Deutsche downgrades Dollar General to Hold as sales remain ‘soft’

Deutsche Bank downgraded Dollar General (DG) to Hold from Buy with a price target of $80, down from $90. The company’s sales performance “remains soft” with limited opportunity for improvement, the analyst tells investors in a research note. The firm thinks Dollar General’s “lagging e-commerce presence is a growing concern in an increasingly digital and convenience-focused retail landscape.” It sees the company’s margin headwinds continuing at least through this year. Deutsche cites ramping competition and pricing pressure for the downgrade.