Prudential: 'Sell' Dollar General
Prudential downgraded Dollar General (DG ) to sell from hold.
Analyst Wayne Hood says he downgraded in light of the company's announcement that it will delay its 10-K filing. He says there's been some talk about fraudulent activity, and says the company plans to restate the last three years' earnings. He could see the stock down as low as $13-$15.
Hood would sell Dollar General into weakness, and recommends a swap into Family Dollar (FD ), which he rates strong buy. Even if Dollar General comes back, Hood believes it will be dead money.