Dollar General price target raised to $128 from $115 at JPMorgan

JPMorgan raised the firm’s price target on Dollar General (DG) to $128 from $115 and keeps a Neutral rating on the shares. The firm notes the company reported Q3 EPS of $1.28 with positive 2.5% same-store-sales more or less matching consensus and the bottom-line beat driven by gross margin expansion and favorable selling, general and administrative expenses at 25.9% of sales equating to 4.0% EBIT margins. Looking ahead, management raised the FY25 EPS guide to $6.30-$6.50 on same-store sales of positive 2.5%-2.7% and positive 4.7%-4.9% sales growth with the implied EBIT margin at about 4.9% by JPMorgan’s math. Based on the revised full year guide, Dollar General’s implied Q4 points to same-store sales growth of about 2.7% at the midpoint and EPS of $1.38-$1.58.