Dollar General price target lowered to $237 from $262 at Truist

Truist analyst Scot Ciccarelli lowered the firm’s price target on Dollar General to $237 from $262 and keeps a Hold rating on the shares. The company’s Q3 earnings missed expectations and profitability guidance was cut on higher product costs, the mix shift towards consumables, and supply chain issues that continue to pressure margins, the analyst tells investors in a research note. Ciccarelli adds that pressures should ease in FY23, but the earnings flow-through will remain challenged due to continued pressure on core low-middle income consumers.