Dollar General price target lowered to $90 from $110 at Jefferies

Jefferies analyst Corey Tarlowe lowered the firm’s price target on Dollar General (DG) to $90 from $110 and keeps a Buy rating on the shares. Heading into Q3 prints from the discount retailer group, the firm says its sales indicator is pointing to some sequential pressure from Q2 to Q3. However, given the compares, the firm is “comfortable” reiterating its comp growth estimate of 1.0%, which translates to 5.4% total sales growth, versus consensus 4.6%. Though its sales expectations are slightly above the Street, it maintains its below-consensus EPS call of 92c as price cuts are taken across the industry and believes that the dollar store space still might rerate at a slightly lower multiple, the analyst tells investors in a preview.