JP Morgan dims views on dollar stores
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Dollar General (NYSE:DG) and Dollar Tree (NASDAQ:DLTR) are expected to encounter turbulence in 2023, according to JP Morgan.

Equity analyst Matthew Boss advised clients that recent outperformance for Dollar General (DG) adds to downside risk as distribution headwinds stand to hurt both sales and margins. The risks to bottom line trends caused Boss to cut his EPS estimate for the upcoming fiscal year to $11.61 from $12.29. 

Boss removed the stock from his âAnalyst Focusâ list, but retained a Buy rating. He trimmed his price target to $242 from $289.

Boss also reeled in his EPS expectations for Dollar Tree (DLTR) to $7.34 from $7.80, citing margin pressure expected in the quarter amid elevated freight and other input costs. He likewise retained a Buy-equivalent rating, but trimmed his price target to $170 from $180 alongside the EPS cut.
Dig into earnings estimates for Dollar Tree.