Goldman Sachs downgraded Dollar General (DG) to Neutral from Buy with a price target of $116, up from $115. The firm cites valuation for the downgrade after a strong recovery in the stock. The company still has room for margin improvement over the long term, but the stock is now pricing in its better fundamentals, the analyst tells investors in a research note. Goldman thinks from here, upside to the stock gets harder given a “still-intense” competitive environment for Dollar General, which could impact the strength of same-store-sales, and the need for the company to still invest in its stores and supply chain.
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