What happened

Shares of Dollar General (NYSE:DG) have climbed by as much as 5% today following analyst activity in the wake of the company's fourth-quarter earnings release yesterday morning. Analysts remain bullish, even though many of them reduced their price targets.

So what

Here's an overview of all the analyst activity from this morning:

  • RBC: Reiterates outperform rating, reduces price target from $239 to $206.
  • KeyBanc: Keeps overweight rating, drops price target from $235 to $220.
  • Raymond James: Maintains strong buy rating, cuts price target from $250 to $220.
  • Deutsche Bank: Keeps buy rating, adjusts price target from $241 to $226.
  • Goldman Sachs: Reiterates buy rating, reduces price target from $238 to $210.
  • J.P. Morgan: Maintains overweight rating, cuts price target from $252 to $224.
  • UBS: Keeps buy rating, reduces price target from $245 to $235.
  • Jefferies: Reiterates buy rating, drops price target from $260 to $250.
  • Telsey Advisory: Maintains outperform rating, cuts price target from $245 to $215.
Exterior of a Dollar General store

Image source: Dollar General.

Now what

Jefferies analyst Corey Tarlowe believes that Dollar General's lackluster guidance was merely the consumer staples company taking a conservative approach to its outlook, as the forecast did not factor in expected benefits from government stimulus. Raymond James analyst Bobby Griffin remains optimistic about Dollar General's long-term growth prospects, but noted that the price target reduction was related to the conservative outlook. RBC analyst Scot Ciccarelli argues that the 16% decline in comparable-store sales over a recent three-week period is misleading, and that the stock offers a compelling valuation for investors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.