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Investing.com - Piper Sandler has raised its price target on Dollar General (NYSE:DG) stock to $115.00 from $112.00 while maintaining a Neutral rating on the shares. The stock, which has surged over 53% in the past six months, currently trades near $109, with InvestingPro analysis suggesting the shares are fairly valued.
The research firm cited Dollar General’s elevated store remodel program, combined with modest store growth, as a positive factor expected to drive approximately 2% lift to comparable store sales growth over the coming years.
Piper Sandler also identified upcoming SNAP benefit cuts as a negative factor that could create a 40 to 50 basis point headwind to Dollar General’s comparable sales starting in the fourth quarter and continuing through 2026 and 2027.
The firm adjusted its second-quarter earnings per share estimate to $1.52, below the consensus of $1.57, to account for an $80 million incentive compensation clawback headwind during the quarter.
Piper Sandler noted that while the recently announced resignation of CFO Kelly Dilts was disappointing, it appears completely unrelated to Dollar General’s fundamentals and outlook.
In other recent news, Dollar General Corporation announced that Kelly M. Dilts, the Executive Vice President and Chief Financial Officer, will resign effective August 28, 2025, to pursue another opportunity. The company is actively searching for her successor, though no further details have been provided regarding the transition. UBS has reiterated a buy rating on Dollar General stock, raising its price target to $128, citing the retailer’s improving margins and growth potential. Loop Capital also increased its price target to $120, maintaining a Hold rating, based on enhanced store execution metrics in various locations. Bernstein SocGen Group reiterated an Outperform rating with a $126 price target, highlighting Dollar General as a top pick due to its self-inflicted challenges rather than market-driven issues. UBS analysts noted that Dollar General’s recent performance shows signs of accelerating growth and robust earnings, despite absorbing additional incentive compensation. These developments reflect a positive outlook from analysts regarding Dollar General’s potential for growth and margin recovery.
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