Oppenheimer upgrades Dollar General stock rating to outperform

On Wednesday, Oppenheimer analysts upgraded Dollar General stock (NYSE: NYSE:DG) to outperform from perform, setting a new price target of $130. The upgrade follows a stronger-than-expected report released by the company earlier this week. According to InvestingPro data, the stock has shown remarkable momentum, gaining over 15% in the past week, though technical indicators suggest the stock is currently overbought.

The analysts expressed increased confidence in Dollar General’s management, highlighting the potential for a sustained 2-3% comparable sales growth and progress towards a 6-7% operating margin target by 2028/2029. The analysts believe that the company’s business model has demonstrated resilience during recessionary periods, which could attract more investment amid an uncertain economic environment. With annual revenue of $41.1 billion and a healthy current ratio of 1.23, InvestingPro analysis shows the company maintains strong financial fundamentals.

The upgrade reflects a positive outlook on Dollar General’s ability to maintain growth and profitability. The analysts noted that Dollar General is among their preferred defensive stocks, along with CHD, COST, PBH, and WMT. InvestingPro data reveals impressive momentum, with the stock posting a 43.6% return over the past six months. For deeper insights into Dollar General’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Dollar General’s recent performance and strategic goals have caught the attention of investors, prompting the upgrade. The company’s ability to navigate challenging market conditions has been a key factor in the positive reassessment by Oppenheimer.

The new price target of $130 suggests potential growth for Dollar General shares, as analysts anticipate continued success in the company’s operational strategies.

In other recent news, Dollar General reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $1.78, surpassing Wall Street’s forecast of $1.46. Revenue reached $10.4 billion, slightly above the anticipated $10.25 billion, marking a 5.3% year-over-year increase. The company also saw a 2.4% rise in same-store sales, driven by consumer demand for value-oriented products. Following these results, several analyst firms adjusted their outlooks: Telsey raised its price target to $120, BofA Securities to $135, and Truist Securities to $112, each reflecting their respective confidence in Dollar General’s strategic initiatives and performance. CFRA upgraded the stock from a Sell to a Hold rating, raising the price target to $118, citing the company’s "Back to Basics" strategy and positive traffic trends. Dollar General plans to open 575 new stores in 2025, emphasizing its commitment to growth and market expansion. Despite concerns about tariffs and consumer behavior, Dollar General remains focused on strategic initiatives to boost operational efficiencies and capture market share.

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