In a report released today, Rupesh Parikh from Oppenheimer upgraded Dollar General (DG – Research Report) to a Buy, with a price target of $130.00.
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Rupesh Parikh has given his Buy rating due to a combination of factors that highlight Dollar General’s promising outlook. The company’s recent performance exceeded expectations, prompting a revision of its stock rating to Outperform and setting a price target of $130. Parikh is optimistic about Dollar General’s ability to achieve a 2-3% comparable sales growth consistently and to progress towards a 6-7% operating margin by 2028/2029. Additionally, Dollar General’s business model has shown resilience during economic downturns, making it an attractive option for investors seeking stability in uncertain times.
Parikh also notes that the company’s management has provided guidance that may be conservative, suggesting potential upside as key initiatives gain traction. The valuation of Dollar General remains favorable, trading at a multiple slightly above its historical average, with room for further expansion. Despite some risks, such as tariff impacts and competitive pressures, Parikh’s confidence in the company’s financial targets and growth potential supports the Buy recommendation.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $135.00 price target.