BMO Capital maintains Dollar General stock rating after earnings beat

Published 03/06/2025, 14:10
BMO Capital maintains Dollar General stock rating after earnings beat

On Tuesday, BMO Capital analysts reiterated their Market Perform rating for Dollar General (NYSE:DG) stock following the company’s first-quarter earnings report. The firm has set a price target of $90.00 for the retailer’s shares, below the current trading price of $97.17. According to InvestingPro data, analyst targets range from $80 to $120, with the stock currently trading below its Fair Value.

Dollar General reported first-quarter earnings per share that exceeded expectations, supported by balanced same-store sales and effective management of selling, general, and administrative expenses. The company has modestly raised its earnings per share guidance for the fiscal year 2026, primarily reflecting the first-quarter performance. InvestingPro data shows 11 analysts have revised their earnings estimates upward for the upcoming period, with the company maintaining strong YTD returns of 30%.

Management, however, expressed concerns about potential uncertainties related to tariffs. The details of these concerns were expected to be discussed in a conference call scheduled for 9 AM Eastern Time.

Dollar General’s performance and the cautious outlook on tariffs were key topics for investors as the company navigates the current economic environment.

In other recent news, Dollar General reported impressive earnings, with earnings per share reaching $1.78, surpassing Barclays (LON:BARC)’ projection of $1.30 and the consensus estimate of $1.46. The company’s gross margin also saw an increase, benefiting from reduced shrinkage and higher mark-ups. Analysts at Jefferies maintained a Buy rating on Dollar General, citing strong first-quarter performance that exceeded consensus estimates in both revenue and earnings. Following these results, Dollar General raised its sales and comparable store sales outlook for the year, also increasing the lower end of its earnings per share guidance.

Telsey Advisory Group adjusted its price target for Dollar General to $100, noting early benefits from store remodels and digital strategies. Meanwhile, Bernstein analysts raised their price target to $120, anticipating higher comparable sales in the coming quarters. Truist Securities reiterated a Hold rating, highlighting a 2.4% growth in first-quarter sales but expressing concerns about declining customer traffic. These developments underscore Dollar General’s strategic adjustments and positive financial performance amid varying economic conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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