Dollar General analyst reworks stock price target after strong recovery
Dollar General analyst reworks stock price target after strong recovery originally appeared on TheStreet.
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."
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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.
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