Morgan Stanley Reiterates Overweight on Dollar General, Removes PT

Morgan Stanley reiterated is Overweight rating on Dollar General (NYSE: DG). At the same time, Morgan Stanley removed its price target from the company's stock, following recent outperformance of the company's stock.

In a research report published today, Morgan Stanley states, "We are removing our price target and lowering our base case to $35 based on 14x our newly lowered F2012 estimates of $2.50 (from $2.55). Dollar General is a long-term winner but after recent outperformance (stock up 27% since February lows, outperforming the S&P by 30% and XRT by 21%) and at 15.2x our next twelve months' estimates, the risk/reward is now balanced in our view."

On Wednesday, Dollar General lost 1.22% of its value to finish the day at $33.98.