Dollar General (DG) PT Lowered to $170 at Argus

Argus analyst Chris Graja lowered the price target on Dollar General (NYSE: DG) to $170.00 (from $175.00) while maintaining a Buy rating.

The analyst comments "Trimming target and EPS estimates • DG is facing a more difficult operating environment than we anticipated but we are optimistic about the companys prospects with Todd Vasos back at the helm as CEO. We are reducing our price target to $170 from $175. • We are reducing our 2Q estimate to $1.74 from $1.94 on a reduction to our estimate of operating margin. • We are reducing our FY26 estimate to $8.30 from $8.50, still reflecting about 5.5% growth in sales and a small improvement in operating margin. Our EBIT estimate is now $2.65 billion, down from $2.7 billion. That puts our EBITDA estimate at $3.625 billion, down from $3.68 billion. Consensus is approximately $3.6 billion. • Based on our analysis using our new earnings estimates for FY25 and FY26, a preliminary estimate of $9.50 for FY27 and assuming two additional years of growth at our long-term growth rate forecast of 10%, the shares would be worth approximately $170."

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