Jefferies Raises Dollar General (DG) Price Target, Maintains Buy Rating

In the wake of better-than-expected quarterly results, Jefferies lifted its price target of Dollar General Corporation (NYSE:DG) on June 3, to $126 from $110, maintaining its Buy rating on the stock. The retail chain surpassed analyst projections on both revenue and earnings, prompting increased optimism from Wall Street. Dollar General Corporation (NYSE:DG) also revised its full-year outlook upward, reflecting confidence in its operational trajectory despite a challenging economic backdrop. Management indicated that the updated guidance factors in a 90-day pause on tariffs, while reiterating that raising prices remains a measure of last resort.

Jefferies pointed to several positive indicators underpinning their revised outlook. They highlighted Dollar General’s ongoing expansion strategy, with new store openings contributing to increased market penetration and customer reach. Additionally, improved operational efficiency was cited as a key driver of potential margin enhancement moving forward.

Investor sentiment has been buoyed by the company’s ability to deliver solid performance amid macroeconomic uncertainty. Dollar General’s disciplined approach to pricing and supply chain management continues to resonate with budget-conscious consumers, supporting consistent traffic and transaction growth. The firm emphasized that the retailer is well-positioned to navigate volatility, with strategic cost controls and a focus on value offerings. As the consumer landscape evolves, Jefferies believes Dollar General’s core strengths—scale, store footprint, and adaptability—will remain central to its continued success in the discount retail sector.

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