Positive Outlook for Dollar General: Buy Rating Affirmed Amid Sales Growth and Strategic Initiatives

Bank of America Securities analyst Robert Ohmes has reiterated their bullish stance on DG stock, giving a Buy rating on May 19.

Robert Ohmes has given his Buy rating due to a combination of factors including Dollar General’s improving sales and margin outlook. The company has shown accelerated sales data in the first quarter, which suggests potential upside against flat market expectations. Despite some profit pressures from store remodels, labor costs, and store closures, Ohmes sees a positive trend in margins throughout the year.
Additionally, Dollar General’s strategic initiatives, such as the Back to Basics program, are expected to enhance operational efficiencies and support gross margin expansion. The company is benefiting from reduced inventory levels and improved in-stock positions, with expectations of continued progress. Furthermore, the expansion of digital services and competitor store closures are anticipated to provide additional growth opportunities for Dollar General, reinforcing the Buy rating.

In another report released on May 19, Goldman Sachs also maintained a Buy rating on the stock with a $96.00 price target.

DG’s price has also changed moderately for the past six months – from $74.930 to $100.640, which is a 34.31% increase.