Justin Sullivan
Opinions of the company Dollar General CorporationNYSE: DG) is slowly making its way back after a fall in earnings after last week when the retailer posted a profit guidance below expectations.
Morgan Stanley is one of the top-leaning firms that hedged the stock on Monday. An expert Mr. Simeon Gutman and the team said they were surprised by the DG’s report and did not expect the storm to affect business at once. However, the company doesn’t expect a bad repair to start.
In fact, comparable growth is expected to remain at 6% to 8% through Q2 of 2023 based on one-year and multi-year estimates, bringing in the benefits of inflation, and continued consumer spending. “The volatility of the line requires a difficult/unpredictable trend in our opinion,” reads the change from Morgan Stanley.
Looking ahead, the EPS growth of the two healthy groups is expected to resume in 2023 and the decline in the stock’s profit is said to reduce the 2023 reduction in MS’s outlook.
DG has been called the defensive bellwether in a market that should continue to favor defensive names at least through the first half of 2023.
Morgan Stanley maintained an overweight position on Dollar General (DG) as it cut its price target to $260 from $270.
Shares of Dollar General ( DG ) rose 0.48% at 3:35 pm on Monday and was on track for the second time in a row the day after the earnings day. The stock has recouped more than two-thirds of its decline since the financial report.
Seeking Alpha author Bela Lakos also defended Dollar General (DG) after the price drop. “The growth of Net sales, including the growth of profit, shows that the demand for the products of Dollar General Corporation has remained strong, while the company has been able to manage the money,” reads the calculation of sales on the retail market.
