In a report released today, Robert Ohmes from Bank of America Securities reiterated a Buy rating on Dollar General (DG – Research Report), with a price target of $90.00.
Robert Ohmes has given his Buy rating due to a combination of factors that suggest a positive outlook for Dollar General. Despite facing elevated expenses in 2025, the company has demonstrated resilience by surpassing earnings expectations in the fourth quarter, with adjusted EPS of $1.68 compared to the anticipated $1.50. This performance was driven by a 1.2% increase in comparable sales, supported by ticket growth, although partially offset by a decline in traffic.
Furthermore, Dollar General has outlined a clear path to achieving a 6-7% operating margin by 2028-2029, up from the current forecast of approximately 4.6% for 2025. This improvement is expected to be fueled by strategic initiatives such as DG Media, a return to pre-pandemic shrink levels, and enhancements in damages management. Additionally, the company’s focus on ‘Back to Basics’ initiatives and digital expansion, including partnerships and delivery offerings, is anticipated to bolster productivity and operational efficiencies, supporting long-term growth and market share gains. These factors underpin Ohmes’s confidence in reiterating a Buy rating with a revised price objective of $90.
Ohmes covers the Consumer Cyclical sector, focusing on stocks such as AutoZone, Best Buy Co, and Costco. According to TipRanks, Ohmes has an average return of 9.1% and a 58.10% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $100.00 price target.
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