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Investing.com - Barclays maintained its Overweight rating and $119.00 price target on Dollar General (NYSE:DG) stock on Monday, citing potential for self-help sales initiatives and market share gains. The stock, currently trading at $112.40, appears fairly valued according to InvestingPro analysis, with a market capitalization of approximately $24.8 billion.
The investment bank expects Dollar General to perform well this year due to challenging conditions for lower-income consumers that should drive trade into the discount retail channel. The company’s strong performance is evident in its impressive YTD return of 51.14% and 44.7% gain over the past six months. Barclays also highlighted potential market share gains from other channels, including drugstores, and continued progress on margin recovery, with the company maintaining a healthy gross profit margin of 29.8%.
Barclays sees modest upside to Dollar General’s second-quarter results, with both sales and margins moving in a positive direction. The firm noted that the magnitude of improvement will be important given easy comparisons and mostly better recent sales indicators.
The bank will be monitoring non-consumable categories for potential upside, along with early results from store remodels that accelerated this year. Additional factors that could drive performance include benefits from digital initiatives that appear to be gaining momentum.
Barclays also identified potential upside from shrink reduction efforts at Dollar General, which could further contribute to the retailer’s performance in the current operating environment.
In other recent news, Dollar General announced that Donny Lau will take over as the Chief Financial Officer on October 20, 2025, replacing Kelly Dilts. During the interim period, CEO Todd Vasos will assume the role of principal financial officer. Truist Securities adjusted its price target for Dollar General to $119, up from $112, maintaining a Hold rating. The firm suggested that based on second-quarter trends, Dollar General might increase the midpoint of its current earnings guidance range of $5.20-$5.80 per share and narrow the range. Meanwhile, Piper Sandler raised its price target to $115 from $112, citing benefits from Dollar General’s store remodel program and modest store growth. In another development, Dollar General has partnered with Uber Eats to offer on-demand delivery from over 14,000 locations. Telsey Advisory Group reiterated its Market Perform rating for Dollar General with a $120 price target, following the announcement of the new CFO. These developments reflect ongoing strategic adjustments and partnerships within Dollar General.
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