Jefferies raises Dollar General stock price target to $92

On Thursday, Jefferies analyst Corey Tarlowe increased the price target for Dollar General (NYSE:DG) shares to $92.00, up from the previous target of $90.00, while maintaining a Reduce rating on the stock. The adjustment follows Dollar General’s latest financial performance, which surpassed Wall Street’s sales expectations, with same-store sales (SSS) growing by 1.2% year-over-year (YoY). According to InvestingPro data, the stock has seen a significant decline of over 51% in the past year, now trading at an attractive P/E ratio of 12.9x, suggesting potential value opportunity.

Dollar General reported a gross margin (GM) that beat consensus estimates, despite a decline on a YoY basis. This was partly due to improvements in shrink, which refers to the reduction of lost inventory due to theft, error, or other inefficiencies. However, selling, general, and administrative (SG&A) expenses increased, primarily because of impairment charges related to the optimization of 51 pOpshelf stores, which contributed to the company missing bottom-line expectations.

Management at Dollar General provided a cautious forecast for the full year but shared an updated and encouraging medium- to long-term outlook. The analyst’s commentary highlighted a positive stance on Dollar General’s potential for sales growth and operating margin (OM) improvement. The report underscored the company’s sales opportunities and the potential for upside in operating margins, which contributed to the decision to raise the price target to $92.

Despite the mixed financial outcomes, with a top-line beat and a bottom-line miss, Jefferies remains optimistic about Dollar General’s sales prospects and the possibility for increased operating margins in the future. The new price target suggests a cautious view but acknowledges the company’s strategic initiatives and long-term growth potential.

In other recent news, Dollar General’s fourth-quarter 2025 earnings report exceeded market expectations with an earnings per share (EPS) of $1.68, surpassing the forecasted $1.50. The company’s revenue reached $10.3 billion, slightly above the anticipated $10.26 billion, marking a 4.5% year-over-year increase. However, guidance for fiscal year 2025 EPS, ranging from $5.10 to $5.80, fell short of the consensus estimate of $5.84. Analysts from Truist Securities and CFRA adjusted their price targets for Dollar General, with Truist lowering it to $76 and CFRA to $84, both maintaining a Hold rating. Conversely, Raymond (NSE:RYMD) James reaffirmed an Outperform rating with a $100 price target, highlighting the company’s resilience and operational improvements. Dollar General reported a 1.2% increase in same-store sales, though customer traffic declined by 1.1%. The company plans to close 96 Dollar General stores and 45 pOpshelf stores in early fiscal 2026, representing less than 1% of its total store base, while also aiming to open 575 new stores during the same period. Dollar General’s management has set ambitious long-term targets, including operating margins of 6-7% by 2028-2029 and a return to 10% or higher EPS growth starting in 2026.

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