NEW YORK (TheStreet) -- Dollar General
(DG) had its price target raised by analysts at BMO Capital Markets to $78 from $65, while also maintaining the company's "outperform" rating.
"While DG's 2Q14 margin and sales results continue to point to challenges the company and the industry face, growing transactions and margin, albeit improved in 2Q14 from the 1Q14 and in August from 2Q14, we believe the proposed acquisition of Family Dollar and related synergies that are materially accretive to EPS will likely overshadow the 2Q14 result," said BMO Capital analysts.
Yesterday, Dollar General reported a 7.5% increase in second quarter revenue to $4.72 billion, while earning 83 cents per diluted share, in line with analysts expectations.
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The company also said that it still wants to buy rival retailer Family Dollar
(FDO) despite the fact that its $9 billion takeover bid was rejected.
Dollar General shares are down -0.6% to $63.80 in early market trading today.
TheStreet Ratings team rates DOLLAR GENERAL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
- You can view the full analysis from the report here: DG Ratings Report
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