Subject: Re: My DG take
BREAKING NEWS!

Dollar General is hit with a bear call by JPMorgan due to the financial stress on core customers
07:40 AM | Dollar General Corporation (DG) | By: SA Editor Clark Schultz, SA News Editor
JPMorgan downgraded Dollar General (NYSE:DG) to an Underweight rating on Wednesday after having the discounter lined up at Neutral.

Analyst Matthew Boss and team see pressure on the stock given Dollar General's (DG) eroding market share, elevated investment philosophy, and continued execution risk with the new leadership.

Crucially, Dollar General's (DG) core low-end consumer are said to be at a recession stress point already given the combination of pandemic-related savings diminished in the summer, persistent inflationary pressures, and reduced government assistance due to the child tax care credit expiration and SNAP cuts. "Compounding matters, management sees excess savings for the middle-income cohort (HHI of $35K-$75K) on pace to be depleted by the end of Fall '23 citing potential for sequential worsening tied to student loan repayments," warned Boss.

Looking ahead, markdowns and increased promotions are seen as a risk for Dollar General (DG) as the pressure gets even more intense for its core customers.

JPMorgan cut its price target on Dollar General (DG) to $116 from $132. The new PT is 14X the firm's FY25 EPS estimate.