FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Keeps Hold Opinion On Shares Of Dollar General Corporation

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target to $123 from $151, based on ~17x our FY 27 (Jan.) EPS estimate of $7.25 (raised from $7.21). Our FY 28 EPS estimate is lowered to $7.84 from $7.88. This compares with the stock's long-term average forward P/E of 18x. Despite a solid Apr-Q EPS beat and an increase to full-year EPS guidance, we maintain our Hold rating, as we see elevated risk in the back half of the year. Key concerns include ongoing pressure on low-income consumer spending, potential freight and fuel cost headwinds, and intensifying competition as peers increasingly lean on targeted promotions to drive value perception. We also note that the company's higher full-year EPS outlook was supported in part by a lower effective tax rate and better-than-expected Apr-Q results, suggesting the underlying operating outlook for the remainder of the year is largely unchanged. Comps also become more challenging in upcoming quarters, particularly on the gross margin line.

Related Articles

Research

Research Alert: CFRA Maintains Hold Rating On Shares Of Dexcom Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month price target to $83 (from $67), 32x our 2026 EPS estimate, near DXCM's one-year historical forward average of 32.9x and well below its longer-term historical averages to reflect increased competition within the continuous glucose monitoring space, in our view. We lift our 2026 EPS estimate by $0.01 to $2.59 and raise our 2027 estimate by $0.02 to $3.07. We think the addressable market for DXCM is large and far from saturated, but a slower sales growth rate is a concern, which we attribute to market share losses and slow progress in gaining additional insurance coverage. We see the upcoming CONNECT study (for type-2 non-insulin patients) readout as a potentially significant near-term catalyst which may drive enhanced insurance coverage. DXCM sees CMS coverage for all individuals with diabetes by mid-2027, which it believes will increase its addressable U.S. market for type-2 non-insulin intensive diabetes by around 80% to 27M people.

$DXCM
Research

Research Alert: CFRA Reiterates Sell Rating On Science Applications International Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We increase our target by $20 to $100 on a P/E of 9.2x our FY 28 (Jan.) EPS view, below historical (13.6x) and peers (12.6x), reflecting lower revenue expectations. We raise our FY 27 EPS estimate to $10.13 from $9.50 and FY 28's to $10.90 from $10.65. Management raised FY 27 guidance across key profitability metrics while maintaining revenue expectations, reflecting confidence in margin sustainability but continued caution on top-line growth. Adj. EBITDA guidance increased to $720M-$730M from $705M-$715M, with margin guidance raised to 10.1%-10.3% from 9.9%-10.1%. Adj. diluted EPS guidance was lifted to $9.90-$10.10 from $9.50-$9.70. However, revenue guidance remained unchanged, implying organic declines of 2%-4% for FY 27, suggesting a cautious outlook on the procurement environment despite the quarter's stabilization.Before becoming more constructive, we need to see sustained strong bookings drive top-line growth, proving SAIC can execute its portfolio pivot and offset significant recompete headwinds.

$SAIC
Research

Research Alert: Hpe Q2: Massive Beats And Guidance Increases As Ai Tailwinds Strengthen

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:HPE reported Q2 FY 26 (Apr-Q) results that blew away consensus expectations, with non-GAAP EPS of $0.79 (+108% Y/Y) beating expectations for $0.53 and revenue of $10.68B (+40% Y/Y) coming in ahead of the Street's $9.76B view. Non-GAAP gross margin expanded 750 bps Y/Y while operating margin of 13.3% was up 530 bps. Results reflect growing AI demand and the strength of HPE's networking portfolio, with Networking sales surging 148% Y/Y (driven by the Juniper acquisition) and Cloud & AI segment revenue growing 23% Y/Y to $7.7B. FY 26 guidance was raised materially, with HPE's revenue midpoint now at $44.9B (consensus $40.84B), non-GAAP EPS lifted to a midpoint of $3.40 from a prior $2.40 view (consensus $2.42), and FCF guidance upped to at least $3.5B from at least $2.0B. Management also provided initial FY 27 sales growth expectations at about 10%, placing FY 27 sales around $49.4B (14% above consensus) in a confident move that reflects improving visibility and strengthening AI tailwinds.

$HPE