Dollar General Stock In Focus Following Price Target Hikes: Retail Stays Extremely Bullish

Shares of discount retailer Dollar General (DG) fell more than 1% on Friday even as the company received several price target hikes following its better-than-expected fiscal fourth quarter results, with retail mood upbeat.

Piper Sandler raised the price target to $81 from $79 with a ‘Neutral’ rating following the results, Fly reported. According to the firm, Dollar General is seeing "trade-in" from upper income consumers helping sales trends to hold steady.

The company's plan to push its same-day delivery partnership with DoorDash (DASH) and margin trends also helped the rating.

JP Morgan also raised its price target by $9 a share, citing the company's initial fiscal 2025 earnings guidance that came below street estimates, with a "show-me" setup for the second half of the year, said the Fly report. Meanwhile, Jefferies raised the price target by $2.

Dollar General posted $1.68 in earnings per share, beating estimates of $1.51. Its revenue stood at $10.3 billion, surpassing estimates of $10.26 billion. Its net sales increased 4.5% year-over-year driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures, the company said.

Its same-store sales went up 1.2% while fiscal year same store sales increased by 1.4%.

Sentiment on Stocktwits inched up in the ‘extremely bullish’ zone on Friday. Message volume rose further in the extremely high territory.

One bullish watcher called the opportunity to invest in DG a “good play” as a hedge against uncertainty from the government’s economic policies.

Dollar General stock is up 4% year-to-date.

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