Dollar General double upgraded to Buy at BofA on signs of strategy working

As previously reported, BofA double upgraded Dollar General (DG) to Buy from Underperform with an unchanged price target of $95, citing multiple early signs that the company’s “Back-to-Basics” strategy is working. These include significantly improved inventory positioning; in-stock levels up a strong 180 basis points from last year, supporting sales upside; in-store customer satisfaction surveys up 900 basis points since Q1, which implies customers are responding to store execution; and merchandising initiatives outperforming.