Analyst Scot Ciccarelli of Truist Financial maintained a Hold rating on Dollar General (DG – Research Report), with a price target of $76.00.
Scot Ciccarelli has given his Hold rating due to a combination of factors impacting Dollar General’s performance and outlook. The company’s fourth-quarter sales aligned with expectations, but the earnings per share slightly exceeded forecasts. However, guidance for the fiscal year 2025 was below previous expectations, indicating potential challenges ahead. The company’s long-term growth algorithm suggests that margin pressures are likely to persist beyond 2025, which is a concern for investors.
Additionally, Dollar General’s core customer base, primarily lower-income consumers, is experiencing financial strain, leading to a focus on essential purchases and increased trade-down activity. The competitive landscape has intensified, particularly with Walmart’s aggressive pricing strategies and expansion of convenience options. These factors contribute to a cautious outlook, prompting a price target adjustment from $83 to $76, reflecting the challenges and uncertainties facing the company.
Ciccarelli covers the Consumer Cyclical sector, focusing on stocks such as Tractor Supply, Costco, and Genuine Parts Company. According to TipRanks, Ciccarelli has an average return of 17.8% and a 73.13% success rate on recommended stocks.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $85.00 price target.