12:10 PM EDT, 05/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $3 to $169, 20x our FY 26 (Jan.) EPS of $8.47 (cut from $8.51; FY 25 cut to $7.04 from $7.30) and in line with its long-term mean. FQ1 (Apr-Q) EPS of $1.65 (-29% Y/Y) beat by $0.07 on same-store sales growth of 2.4% (driven by traffic) vs. the 1.8% consensus. DG kept its full-year (FY 25) guidance unchanged, but stated on the earnings call that its Back-to-Basics strategy is taking a bit longer than expected due to continued issues with shrink, the product mix shift to consumables, and an intensifying promotional environment. FQ2 (Jul-Q) will likely be a bit soft, but we expect DG to return to profitable growth in the back half of this fiscal year. We think we could see even stronger growth in FY 26 as shrink improves and DG realizes more supply chain efficiencies. We like DG's strategy to focus more on store remodels (1,620 store remodels planned this year) over new store openings. We keep a Buy rating, as shares look attractively valued trading at about 16x our FY 26 EPS view.