Analyst Simeon Gutman from Morgan Stanley maintained a Hold rating on Dollar General (DG – Research Report) and keeping the price target at $80.00.
Simeon Gutman has given his Hold rating due to a combination of factors affecting Dollar General’s current and future performance. The company is facing macroeconomic and competitive challenges, which are balanced by its strategic initiatives aimed at stabilizing comparable sales and improving gross margins. Gutman notes that while Dollar General’s plans to expand home delivery and enhance store experiences are promising, there are still significant risks from big box eCommerce competitors and wage inflation that could impact profitability.
Gutman’s analysis indicates that the risk/reward profile for Dollar General is balanced at the current stock price, with potential upside if consumer spending normalizes and digital channels grow. However, downside risks include continued pressure from competitors and margin compression. The company’s recent performance shows modest improvement, but uncertainties around consumer behavior and market dynamics prevent a more optimistic rating. Overall, the Hold rating reflects a cautious approach given the mixed outlook and ongoing challenges.
According to TipRanks, Gutman is a 3-star analyst with an average return of 1.5% and a 56.91% success rate. Gutman covers the Consumer Cyclical sector, focusing on stocks such as Advance Auto Parts, Tractor Supply, and Wayfair.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $81.00 price target.