Dollar General (DG) Has “More Room to Run,” Says UBS

Dollar General Corporation (NYSE:DG) ranks among the top consumer staples stocks according to hedge funds. On June 27, UBS upheld its Buy rating and $128 price target for Dollar General Corporation (NYSE:DG), pointing to the retailer’s improving trajectory following a period of mixed performance.

Recent conversations with Dollar General Corporation (NYSE:DG), according to the firm, had “the most positive tenor” the company has offered in a number of years, suggesting a possible route to a notable improvement in margins. According to UBS, Dollar General’s operating margin might rise to the 6-7% range that the company had laid out, up from the 4.5% that was anticipated this year. This would indicate substantial progress in the company’s recovery efforts.

In response to investor concerns on the durability of Dollar General’s current stock momentum, UBS said that the company has “more room to run” as it resolves its margin issues and resumes a more stable performance pattern.

Dollar General Corporation (NYSE:DG) is an American chain of variety stores that offer a range of goods throughout the mid-western, southern, southwestern, and eastern regions of the United States.

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