Dollar General (DG) Stock Receives Price Target Raise at BMO Capital

NEW YORK (TheStreet) -- Dollar General (DG) had its price target increased to $85 from $79 by analysts at BMO Capital Markets with an "outperform" rating.

The stock is gaining today by 1.21% to $75.89.

Analysts cited the company's strong first quarter 2015 earnings. The company yesterday reported revenue of $4.9 billion, or 84 cents per share, compared to revenue of $4.5 billion, or $1.01 per share, in the same quarter last year.

Overall, the discount retailer exceeded BMO Capital Markets analysts' consensus estimates of 81 cents per share for the quarter.

Additionally, "Gross margin rate improved primarily on higher initial merchandise markups and management's continued effective focus on inventory shrink rate, combined with lower transportation costs," analysts said.

Last week, the company also announced that Todd Vasos would be the next CEO of the company.

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:

"We rate DOLLAR GENERAL CORP (DG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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 largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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