Dollar General shares rise 8% on return of old CEO; earns analyst upgrade to Buy

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By Robert Fofana

Dollar General shares rise 8% on return of old CEO; earns analyst upgrade to Buy
© Reuters.

Investing.com — Dollar General said it had appointed former Chief Executive Officer Todd Vasos as CEO of the company.

Dollar General Corporation (NYSE:) shares rose 8% in early Friday premarket trading following the news.

Vasos, a current board member, was previously CEO from June 2015 to November 2022.

The retailer said it now expects net sales growth in a range of 1.5% to 2.5% for fiscal 2023 from prior estimates of 1.3% to 3.3%, while EPS was lowered to a range of $7.10 to $7.60 from $7.10 to $8.30 previously.

KeyBanc analysts weighed in positively on Vasos’ return.

“We believe the transition could improve investor sentiment and accelerate investments needed to stabilize the business. However, we continue to see a challenging environment for DG as we look ahead to 2024,” they wrote.

Gordon Haskett analysts went one step further and upgraded DG stock to Buy.

“We think building a position in DG at current levels now makes sense – hence our upgrade,” the analysts said.

(Additional reporting by Senad Karaahmetovic)

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