Telsey Advisory Raises PT on Dollar General (DG), Keeps Market Perform Rating

On May 27, Telsey Advisory Group increased the price target on Dollar General Corporation (NYSE:DG)’s stock to $100 from the prior target of $85. The firm kept its “Market Perform” rating. Joseph Feldman, analyst at Telsey Advisory Group, emphasised the company’s early benefits from strategic initiatives including store remodels, digital and media strategies, product assortment updates, and a Back to Basics approach.

As per the analyst, such efforts can bolster Dollar General Corporation (NYSE:DG)’s performance amidst economic pressures on the core demographic of lower-income households. Over the medium term, the analyst believes that Dollar General Corporation (NYSE:DG) might evolve into a mature retailer, pivoting away from rapid expansion and moving towards improving in-store experiences and operational efficiency.

Dollar General Corporation (NYSE:DG) believes that its Back to Basics work continues to resonate with customers, evidenced by increased customer satisfaction scores and strong market share gains.

Entering 2025, the company is optimistic regarding the Pop Shelf banner and its opportunity to fuel improvements in sales results, given that the customers’ feedback on the brand and shopping remains strong.

Dollar General Corporation (NYSE:DG) plans to build on its strength to increase sales with the help of initiatives focused on brand partnerships and new and expanded categories. For FY 2025, it expects net sales growth of between ~3.4% - 4.4%.

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