Dollar General downgraded at JPMorgan, removed from Analyst Focus List

JPMorgan downgraded Dollar General to Neutral from Overweight with a price target of $132, down from $210, and removed the stock from the firm’s Analyst Focus List after Dollar General reported Q2 EPS that were below the Street estimate, driven by “a miss across all line items.” Management cut the midpoint of its FY23 EPS guidance by 25%, notes the analyst, who noted that today’s forecast revision “represents the 4th consecutive downward EPS revision.” The firm, which lowered its own FY23, FY24 and FY25 EPS forecasts, sees its revised estimates reflecting a “best case” scenario of 7% annual EPS growth despite the 27% negative revision to its view of the FY25 EPS power.