Wells Fargo Keeps Neutral Stance on Dollar General (DG) Amid Diverging Retail Trends

Dollar General Corporation (NYSE:DG) is included among the 20 Best Performing Dividend Stocks in 2025.

On December 19, Wells Fargo raised its price target on Dollar General Corporation (NYSE:DG) to $125 from $115 and kept an Equal Weight rating. The firm sees a mixed setup for 2026 across the group, but not without opportunity. Wells is constructive on broadlines and food service, notes that fiscal and tariff-related trade activity is already underway, and believes earnings momentum can carry through the first half of EPS revisions. At the same time, it flags a more challenging backdrop for food retail, where company-specific factors will matter more than broad trends.

A few days earlier, on December 15, JPMorgan upgraded Dollar General to Overweight from Neutral and lifted its price target to $166 from $128. After meeting with management, the firm said Dollar General is “back on offense.”

That shift in tone followed a solid earnings update. On December 4, Dollar General Corporation (NYSE:DG) raised its full-year profit outlook after beating third-quarter estimates. Management pointed to steady traffic from value-focused shoppers across income levels, as households look to manage spending in an uncertain economy. Cost controls also played a role. Similar patterns have been noted across the sector, including at larger peers like Walmart.

Pricing discipline remains central to the strategy. Dollar General continues to keep roughly 25% of its assortment priced at or below $1. That approach resonates with its core customer base, typically households earning under $35,000 a year, and has helped position the chain as a reliable destination for everyday needs.

Dollar General Corporation (NYSE:DG) operates as a discount retailer, offering a broad mix of consumables, seasonal merchandise, home products, and apparel.

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