Paul Lejuez, an analyst from Citi, maintained the Hold rating on Dollar General. The associated price target remains the same with $112.00.
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Paul Lejuez has given his Hold rating due to a combination of factors impacting Dollar General’s stock. The company is expected to slightly exceed second-quarter sales and earnings per share (EPS) estimates, with management likely to raise their fiscal 2025 guidance. Despite these positive short-term prospects, the stock has already performed well, suggesting that market expectations have increased.
Additionally, long-term challenges persist, particularly with competition from Walmart, which continues to gain market share across different income groups. This competitive pressure, along with the stock’s current performance, skews the risk/reward balance negatively. As a result, while there are some positive indicators, the overall outlook remains cautious, leading to the Hold rating.