Both companies have delivered similar returns year-to-date;
MKM Opts For Dollar General
MKM Partners maintains a Neutral rating on Dollar Tree and keeps its Buy rating on Dollar General heading into the third-quarter release. With Wal-Mart Stores, Inc.
“We continue to prefer DG, which is cheaper, isn’t contending with an acquisition, and could have more success in responding to a more challenging industry backdrop,” said MKM.
Despite the bullishness on Dollar General, MKM analysts expressed the sentiment that they were “probably too aggressive” on their FY 2017 forecast and cut EPS estimates from $5.20 to $5.05.
|Oct 2016||KeyBanc||Initiates Coverage On||Sector Weight|
|Sep 2016||Barclays||Initiates Coverage on||Equal-Weight|
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