Dollar General initiated with a Reduce at HSBC

HSBC analyst Daniela Bretthauer initiated coverage of Dollar General with a Reduce rating and $102 price target. The analyst says the U.S. retail sector is a “vast market set for further growth.” Pandemic accelerated digital transformations but well-developed offline-to-online approaches still appear key to market share, the analyst tells investors in a research note. The firm calls Walmart its preferred name with Dollar General its least favorite. HSBC says Dollar General’s lack of a digital strategy and greater exposure to weaker consumer spending on discretionary goods support a bearish view.