KeyBanc Capital Markets analyst Bradley Thomas maintains an Overweight rating on Dollar General with a $180 price target.
The Buckingham Research Group's Bob Summers maintains at Buy, $178 price target.
KeyBanc: Built For Growth And Defense
Dollar General reported an EPS beat of $1.42 in the quarter due to stronger than expected sales and a lower than expected tax rate, Thomas wrote in a note. Same-store sales were higher by 4.6% which was 1.6 percentage points better than expected. Encouragingly, comps also accelerated on a one-year and three-year basis but was slightly lower on a two-year basis.
Looking forward Dollar General's "wealth of initiatives," including a focus on DG Fresh, DG Go!, and Fast Track represent catalysts that can spur growth or emphasize the retailer's defensiveness nature. Investors should expect continued top-line growth and longer-term share gains.
Buckingham: 'Everything Is Working'
Dollar General's earnings report shows that not only is "everything is working" but the momentum can continue moving forward, Summers wrote in a note. Management is showing ongoing strategic initiatives are generating results which helps support margins, sales, same-store sales and EPS.
The company's proposition of offering attractive value in the retail sector is backed by the "counter-cyclical nature" of the business, the analyst wrote. However, strong upside in the stock will be dependent on earnings revisions moving higher after a strong multiple expansion over the past year.
Dollar General Price Action
Shares of Dollar General closed Friday down 0.25% at $154.72.
Dollar General Trades Higher On Q3 Earnings Beat
Resilience Back In Picture: Solid Rebound From Early Week Slide Amid Trade Hopes
Latest Ratings for DG
View More Analyst Ratings for DG
View the Latest Analyst Ratings
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.