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Shares of Dollar General (NYSE:DG) are down over 1% after a BMO analyst cut the rating to Market Perform from Market Outperform with a $265 per share price target.
The analyst believes DG is “priced for perfection” and close to peak levels.
“Despite our belief that DG’s execution remains strong and our expectation for an acceleration in comps as DG benefits from a more price sensitive environment, we believe this strong outlook is accurately reflected in the shares at this time,” the analyst said in a client note.
Moreover, the analyst sees “modest risks” for DG, which makes it further difficult for Bania to increase the price target.
On the other hand, a Raymond James analyst reaffirmed Strong Buy on DG into the earnings, which are due on August 25.
“We continue to believe DG remains an attractive investment opportunity, in a wide variety of economic environments. In our view, DG has the capabilities and real estate growth strategy (multi-year) to continue to gain market share by targeting quick “fill in” trips for cash-strapped consumers,” he told clients in a note.
Interestingly, he has a lower target price ($260) on DG than the BMO analyst.
