Dollar General price target lowered to $125 from $135 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Dollar General to $125 from $135 and keeps an Equal Weight rating on the shares after the company announced Todd Vasos will return to the CEO post he’d previously held from 2015-2022. While the management change should “catalyze strategic change,” the firm does not see a quick fix given multiple areas that may need improvement in an increasingly competitive backdrop, the analyst tells investors. Guidance is being reduced again by about 5% at the midpoint on EPS, signaling that “perhaps the negative revision cycle has not yet bottomed,” the analyst added.