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Here are the biggest calls on Wall Street on Tuesday:
Bernstein downgraded Dollar General to ‘market perform’ from ‘outperform’
Bernstein said it sees sales and earnings growth as “less certain” than the past.
“The most obvious reason to stay bullish is DG‘s defensive nature. In a recession, they should do well and hold up when the market collapses. But, we have been terrible at market level calls having been bearish before bearishness was cool. Thus, we cannot in good conscience advocate buying or adding to DG at this level. We do understand and advocate holding DG through any downcycle, but we think a better choice for defensiveness is DLTR.”
Guggenheim downgraded Wendy’s to ‘neutral’ from ‘buy’
Guggenheim said the company’s entrance into breakfast is a “potentially risky” way to add topline growth.
“Our investment outlook is reduced as we see the announcement to enter breakfast as adding risk to shares and diluting the NT free cash flow…