Dollar General downgraded to Outperform from Strong Buy at Raymond James

Raymond James analyst Bobby Griffin downgraded Dollar General to Outperform from Strong Buy with a price target of $160, down from $200, following the Q2 report. The analyst sees a lower near-term earnings outlook via margin pressure and consumer weakness for the company. While the firm is “disappointed” with the recent guidance reductions, it does not think Dollar General is a “permanently broken business” and believes the cost pressures hindering earnings will eventually abate and the company will return to more consistent earnings growth.