BofA Securities Upgrades Dollar General (DG) to Buy

BofA Securities analyst Robert Ohmes upgraded Dollar General (NYSE: DG) from Underperform to Buy with a price target of $95.00.

The analyst comments "We upgrade DG to Buy from Underperform given multiple early signs of DG’s “Back-toBasics” Strategy working, including: 1) significantly improved inventory positioning (down 7% y/y per store), helping store & DC execution; 2) in-stock levels up a strong 180bp vs. LY (supporting sales upside); 3) in-store customer satisfaction surveys up 900bp since 1Q (implies customers responding to store execution); and 4) merchandising initiatives outperforming, including Value Valley ($1 priced items in 24-36 feet of space) out-comping its nearest category by 600bp. SKU reductions (net 1,000 items cut by end of this year), a distribution center sorting process refresh (1st time since 2017) and the recent (November) launch of e.l.f. Beauty products into thousands of DG stores also support a favorable setup for comp & profitability improvement in 2025."

For an analyst ratings summary and ratings history on Dollar General click here. For more ratings news on Dollar General click here.

Shares of Dollar General closed at $79.60 yesterday.

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