Dollar General (DG) PT Raised to $135 at BofA Securities
BofA Securities analyst Robert Ohmes raised the price target on Dollar General (NYSE: DG) to $135.00 (from $115.00) while maintaining a Buy rating.
The analyst comments "We reiterate our Buy and raise PO to $135 (was $115) to reflect 21x (was 18x) our F27E EPS of $6.40 (raised +5c) given confidence that Back to Basics initiatives (incl. SKU rationalization, inventory reduction, DC resets, and case pack optimization) are working, which should continue driving efficiencies over time. DG has a variety of catalysts supporting gross margin expansion (incl. strategic initiatives like DG Media Network and improving shrink & damages), as well as initiatives supporting top line momentum/share gains incl. remodels, digital/delivery expansion, and return of non-consumables growth."