Analysts Are Downgrading These 5 Stocks

04. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 53

Dollar General Corporation (NYSE:DG) is a discount retailer in the United States. The company is headquartered in Goodlettsville, Tennessee. Discount retailers like Dollar General Corporation (NYSE:DG) tend to perform well during economic downturns when consumers are looking to reduce expenses. However, On June 6, Dollar General Corporation (NYSE:DG) was downgraded by Wells Fargo analyst Edward Kelly from Overweight to Equal Weight, with a lowered price target of $165 compared to the previous target of $178.

The downgrade comes following meetings with Dollar General Corporation (NYSE:DG) management. While the company attempted to deliver a reassuring message, Wells Fargo expressed concerns that Dollar General Corporation (NYSE:DG) is facing underlying challenges that require an investment cycle to rectify. The analyst notes that a return to its previous growth trajectory is unlikely in the near term. The firm highlights management departures, execution issues that deviate from the company’s typical performance, evidence of some loss in market share, price increases, increased labor costs, reduced shelf growth, and a temporary suspension of share repurchases as factors of concern. Wells Fargo believes that Dollar General Corporation (NYSE:DG) issues extend beyond macroeconomic factors and include some transitory operational challenges.