Dollar General analyst reworks stock price target after strong recovery
If you're anywhere near Weedsport, N.Y., this weekend, you might want to stop by 8881 South Seneca Street.
That's where Dollar General () is holding a grand opening on June 28 for its relocated store. The Cayuga County village, half an hour west of Syracuse, is the birthplace of the silent-film actor Justus D. Barnes, who played a major role in "The Great Train Robbery."
💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰
The first 50 adult customers will receive $10 gift cards, and the first 100 shoppers will get Dollar General tote bags.
'We are excited to reopen our relocated store in Weedsport and celebrate with the local community,' Matthew Simonsen, the chain's senior vice president of real estate and store development, said in a statement.Discount and dollar stores are seeing renewed growth in 2025, outperforming other nondiscretionary retail sectors, as economic uncertainty drives consumers to prioritize value, according to Placer.ai.
Dollar Tree () and Five Below () were outperforming the category based on year-over-year growth, while Dollar General was leading in visitor loyalty.
Dollar General and Dollar Tree have seen an increase in loyal visitors, defined as people who visit three or more times a month, compared with last year, Placer.ai. said.
Dollar General's level of loyal visitors, 36% shopping three times per month, is considered very high.
"Dollar chains are primed to be an asset to consumers as economic and financial uncertainty continues, but consumers may also continue to be more discerning overall," the analytics platform said.
These stores "must continue to innovate and expand assortments, particularly in grocery, to stay competitive as warehouse clubs and superstores also vie for attention."While consumer sentiment improved in June — the first increase in six months — it remains historically low and significantly below the level of a year ago, according to the University of Michigan's survey.
'Consumers' fears about the potential impact of tariffs on future inflation have softened somewhat in June,' said Joanne Hsu, the survey's director.
"Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that trade policy may still contribute to an increase in inflation in the year ahead."
Dollar General shares have had a good 2025, surging 46%. The shares are down about 16% from this time in 2024.
Earlier this month, the Goodlettsville, Tenn., company beat Wall Street's fiscal-first-quarter expectations for earnings and revenue.
"We believe our efforts are resonating with a wide range of customers as they continue to seek value in our more than 20,000 store locations around the country,' Chief Executive Todd Vasos told analysts during the company's earnings call.
After the company posted its quarterly results, Evercore ISI raised its price target on Dollar General to $117 from $100, while affirming an in-line rating on the shares.
Dollar General's back-to-basics approach is gaining traction with solid fiscal-Q1 sales and profit up 5% year over year, and the company is benefiting from higher ticket sales in discretionary categories and a wider gross margin, Evercore said.
Risk from the Trump administration's tariff policy remain a potential 5%-8% headwind for earnings per share, but Dollar General's turnaround is showing "promising" signs, the firm said.Telsey Advisory analyst Joseph Feldman raised his price target on DG to $120 from $100 and kept a market-perform rating on the shares.
While the company remains pleased with its May comparison and expects momentum to stay solid this year, Feldman said, he sees tariffs as a wild card.
Overall, the analyst said, he remains constructive on the stock.
And on June 24 Goldman Sachs downgraded DG shares to neutral from buy with a price target of $116, up from $115.
The investment firm cited valuation for the downgrade after the stock recovered sharply. Goldman said the company still has room to widen margins long term, but the stock is now pricing in its better fundamentals.
Goldman said that upside to the stock will get harder, given "still-intense" competition, which could hurt DG's same-store-sales, and given the company's need to invest in its stores and supply chain.Dollar General analyst reworks stock price target after strong recovery first appeared on TheStreet on Jun 24, 2025
This story was originally reported by TheStreet on Jun 24, 2025, where it first appeared.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
a few seconds ago
- CNN
NBA clears Boston Celtics' $6.1 billion sale to Bill Chisholm
A group headed by Bill Chisholm is set to take control of the Boston Celtics after the NBA Board of Governors unanimously approved the sale on Wednesday. The NBA wrote in a statement, 'The transaction is expected to close shortly.' The reported $6.1 billion valuation for the club makes it the second-largest sale price for a US sports franchise, behind the $10 billion valuation for the Los Angeles Lakers when Mark Walter purchased that team in June. Chisholm and his partners are buying at least 51 percent of the Celtics. The ownership stake will increase in 2028, according to the purchase contract, when Chisholm's group is scheduled to buy out the remaining minority shareholders at a $7.3 billion valuation. According to multiple media reports, Chisholm will take over as the Celtics' governor when the sale goes through. Outgoing owner Wyc Grousbeck is expected to serve as alternate governor and remain the CEO through 2028. Grousbeck will cede his role when he no longer has the required ownership stake of at least 15 percent. Chisholm, the co-founder and managing partner of the California-based private equity firm STG Partners, is a Massachusetts native and longtime Celtics fan. Grousbeck and the outgoing ownership group Boston Basketball Partners LLC purchased the Celtics for $360 million in 2002. During that group's tenure, the club won NBA titles in 2007-08 and 2023-24 – the latter representing Boston's league-record 18th championship.
Skift
2 minutes ago
- Skift
Canadians Shun U.S., Ennismore's IPO Impact, and MSC's Carbon Cuts
Listen to the day's top travel stories in under four minutes every weekday. Good morning from Skift. It's Thursday, August 14. Here's what you need to know about the business of travel today. Canadians are continuing to shun travel to the U.S., writes Associate Editor Rashaad Jorden. The number of Canadians returning by car from the U.S. dropped 37% in July from last year, marking the seventh straight month of declines. July also saw a roughly 26% decrease in Canadians returning by air from the U.S. However, the number of Canadians returning from destinations other than the U.S. rose roughly 6%. Japan and Brazil, among other countries, have registered double-digit increases in Canadian visitors between January and June. Listen to This Podcast Apple Podcasts | Spotify | Youtube | RSS Next, Hospitality Reporter Luke Martin explains how a successful IPO for Ennismore could change how investors view lifestyle hotels. Martin writes, although Wall Street has long prioritized scale and cost efficiency, a successful IPO could elevate design, brand heat, and food-and-beverage revenue as credible sources of long-term value. If Ennismore performs well as a public company, Martin notes that would change how developers in the U.S. pick brands. However, Martin writes that if an Ennismore IPO were to stumble, that would reinforce the prevailing view that lifestyle belongs inside big hotel groups, not as a standalone business on the public markets. Finally, MSC Cruises, the third-largest cruise operator by passenger numbers, says it managed to cut greenhouse gas emissions last year. But the cruise industry still has a lot of work to reduce its massive carbon footprint, writes Climate Reporter Darin Graham. MSC Cruises highlighted in its latest climate report the tweaks and strategies that helped it cut emissions, including using AI-controlled heating and cooling systems. In addition, MSC's move to plug ships into the grid while in port enabled ships to run on electricity. However, MSC said its overall emissions will start climbing again without more transformative decarbonization solutions as its fleet grows. A report from maritime consultancy DNV warns that by 2030, the global production of carbon-neutral fuels for cruise ships won't match demand.
CBS News
3 minutes ago
- CBS News
Pipe Unlocks Financial Growth for SMBs with Embedded Capital Access
This content was provided by Acumen Media for Pipe. This advertiser content was paid for and created by Acumen. Neither CBS News nor CBS News Brand Studio, the brand marketing arm of CBS News, were involved in the creation of this content. Small and medium-sized businesses are the backbone of the American economy, contributing 43.5% of the U.S. GDP and employing over 59 million workers. Yet despite their impact, access to capital remains one of their biggest challenges. Traditional lending options are often rigid and inaccessible, requiring lengthy applications, credit checks and personal guarantees. As an emerging innovator in fintech, Pipe is changing that by reshaping how these SMBs access financing by embedding it directly into the software platforms that they already use. By meeting entrepreneurs where they are, inside the tools they trust, Pipe eliminates the friction of traditional financing, opening up new opportunities for entrepreneurs to grow and thrive. For Brooke Hill and Zanbria Asante, cofounders of Swella Braid Bar, the shortcomings of traditional financing were familiar. After launching their first location in Atlanta, Georgia, they sought out capital to fuel a second opening in Charlotte, North Carolina. However, they found that traditional lending didn't exactly meet their needs: banks wanted financial statements, tax returns and personal guarantees. Then came an unexpected solution, right from the platform they already used to run their day-to-day operations. Boulevard, a client experience platform tailor-made for self-care businesses, had long been central to Swella's operations. From online booking to payment processing, Boulevard says it helps streamline their customer interactions and has become a trusted partner in their success. So when Hill received a capital offer from Boulevard, she felt confident accepting the funding. The offer, powered by Pipe, was based on Swella's real-time business performance and cash flow. With just a few clicks, Swella secured the capital they needed—no paperwork, credit scores or collateral needed. The embedded finance market is growing rapidly, projected to exceed $588 billion in revenue by 2030, according to Bain & Company, with embedded lending emerging as a key driver of this growth. By partnering with Pipe, companies like Boulevard are offering their customers not only business tools but also direct access to customer-friendly capital at the point of need. Under the leadership of CEO Luke Voiles, Pipe is transforming the financial landscape by making capital more accessible, seamless and aligned with the way these small businesses operate today.
