Dollar General remains a Top Idea at Wells Fargo despite ‘struggles’

Wells Fargo notes that Dollar General is one of the worst performing stocks in its coverage so far this year, as the name has suffered from concerns about Q4 earnings, below consensus 2023 guidance, SNAP cuts, and the CFO’s resignation. Wells sees the pullback as a buying opportunity. Expectations have fallen, each of these issues look manageable in its view, and the firm sees unique flexibility for the company to make/beat initial guidance. Wells says that despite struggles, Dollar General remains a Top Idea. The firm has an Overweight rating on the shares with a price target of $275.