NEW YORK (TheStreet) -- Dollar General's (DG) - Get Report stock rating was lowered by several firms on Friday morning after the company posted weaker-than-anticipated results for the 2016 second quarter yesterday.
BMO Capital Markets cut its rating on shares to "market perform" from "outperform" this morning. The firm also slashed its price target to $78 from $95.
"We are lowering our rating...following the company's disappointing 2Q16 EPS print, and what we see as incrementally more same-store sales headwinds emerging into the second half of 2016 and potentially into 2017," BMO wrote in an analyst note.
Dollar General's stock rating was also reduced to "market perform" from "outperform" at Telsey Advisory this morning, the Fly reports.
Yesterday, shares were downgraded to "neutral" from "outperform" at Credit Suisse following the quarterly report.
Additionally, MKM Partners cut its price target to $86 from $97 earlier today and maintained its "buy" rating on shares. The firm said it is "tempering" its view after the "disappointing" results, but believes Dollar General's compelling long-term story is still intact.
"Same-store sales were positive and better than most retailers, but decelerated from the first quarter and missed expectations as food price deflation and cuts in food stamp assistance had a bigger impact than anticipated," MKM commented in a note.
The company's same-store sales increased 0.7% during the most recent period, while the firm was expecting growth of 2.5%.
Shares of Dollar General were edging down in pre-market trading on Friday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity.
The team believes its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DG