Oppenheimer Raises Price Target for Dollar General to $145

Dollar General’s stock price target has been increased by analysts at Oppenheimer from $138.00 to $145.00, as reported on December 4, 2023. The brokerage maintains an “outperform” rating on the stock, which suggests a potential upside of 9.29% based on its current price. This adjustment reflects a growing confidence in the retailer’s performance, especially following its recent quarterly earnings report.

Additional analysts have also weighed in on Dollar General’s stock. The Telsey Advisory Group reaffirmed a “market perform” rating while raising its target price from $123.00 to $130.00. Meanwhile, Wall Street Zen upgraded the stock from a “hold” rating to a “buy” rating in a report released on Saturday. Raymond James Financial reiterated an “outperform” rating with a target price of $135.00, and Jefferies Financial Group increased its price objective from $130.00 to $142.00, also designating the stock with a “buy” rating. Morgan Stanley adjusted its target price from $125.00 to $135.00 while maintaining an “equal weight” rating.

The overall consensus on Dollar General’s stock is mixed, with one analyst rating it as a Strong Buy, eleven providing a Buy rating, and fifteen assigning a Hold rating. According to data from MarketBeat.com, the current consensus rating for Dollar General stands at “Hold,” with an average price target of $125.43.

Recent Earnings and Future Guidance

Dollar General recently reported its quarterly earnings on December 4, 2023. The company achieved an earnings per share (EPS) of $1.28, exceeding analysts’ expectations of $0.95 by $0.33. The retailer’s revenue for the quarter reached $10.65 billion, slightly above the forecast of $10.60 billion. Notably, Dollar General’s net margin stood at 3.03%, with a return on equity of 18.59%. The revenue marked an increase of 4.6% compared to the same quarter last year, when the company posted an EPS of $0.89. For fiscal year 2025, Dollar General has set its guidance at an EPS range of 6.300-6.500.

Market analysts anticipate that Dollar General will post an EPS of 5.75 for the current year, highlighting a generally positive outlook despite the mixed ratings.

Institutional Investors’ Activity

Several institutional investors have recently adjusted their holdings in Dollar General. Severin Investments LLC established a new position in the company, investing approximately $497,000 during the third quarter. Allworth Financial LP increased its stake by 52.9%, now owning 2,964 shares valued at roughly $306,000 after acquiring an additional 1,025 shares. IFP Advisors Inc also grew its stake by 8.0% during the same period, owning 4,804 shares worth $497,000.

Swiss Life Asset Management Ltd made a significant move by raising its stake by 159.1%, now holding 103,707 shares valued at $10.72 million following an acquisition of 63,676 shares. Groupama Asset Management also acquired a new stake valued at approximately $392,000 during the third quarter. Currently, institutional investors and hedge funds own 91.77% of Dollar General’s stock.

Dollar General Corporation operates as a discount retailer, offering a wide range of products across the southern, southwestern, midwestern, and eastern United States. Its inventory includes consumable goods, packaged food, and perishables, catering to a diverse customer base.

As analysts continue to evaluate Dollar General’s performance, the company’s ability to adapt to changing market conditions will be crucial for maintaining investor confidence and achieving its financial goals.