Bank of America Securities analyst Robert Ohmes maintained a Buy rating on Dollar General (DG – Research Report) yesterday and set a price target of $90.00.
Robert Ohmes has given his Buy rating due to a combination of factors that suggest a positive outlook for Dollar General. The company is expected to benefit from increased trade-in activity, which should boost comparable sales and help mitigate fluctuations among its core customer base. This trend, coupled with larger basket sizes, indicates a promising trajectory for Dollar General as it continues to attract more customers.
Additionally, Dollar General is making significant progress in several operational areas. Inventory levels are improving due to aggressive reductions, and store manager turnover is stabilizing. The company is also strategically remodeling a significant portion of its stores annually, which is expected to enhance operational efficiency and reduce costs related to shrinkage and maintenance. Furthermore, strategic initiatives like the DG Media Network and efforts to increase the non-consumables mix are anticipated to drive gross margin expansion, providing a robust foundation for future growth.
In another report released on March 14, Barclays also maintained a Buy rating on the stock with a $100.00 price target.
DG’s price has also changed slightly for the past six months – from $87.320 to $87.540, which is a 0.25% increase.