DG - Dollar General May Have Reported Solid Q3 Performance But This Analyst Cautions The Path Could Be Bumpy Ahead | Benzinga
Telsey Advisory Group analyst Joseph Feldman reiterated the Market Perform rating on Dollar General Corporation (NYSE: DG), raising the price target to $135 from $124.
Dollar General reported better-than-anticipated 3Q23 earnings, albeit still down YoY, and maintained its soft 2023 outlook.
Sales have been improving sequentially, with traffic turning positive in the middle of 3Q23 and continuing to improve through November.
That said, lower markups and increased markdowns seemed to drive part of the improvement, the analyst writes.
Furthermore, the business continues to be impacted by the tough consumer spending environment and ongoing investments, such as retail labor, markdowns, and shrink, which ...