Robert Ohmes, an analyst from Bank of America Securities, maintained the Buy rating on Dollar General. The associated price target remains the same with $135.00.
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Robert Ohmes has given his Buy rating due to a combination of factors that highlight Dollar General’s strategic improvements and growth potential. The company has been enhancing its store execution through a new point system that evaluates various operational metrics. This initiative has shown positive results, with district managers actively addressing any execution gaps, and store managers being incentivized through sales and shrink bonuses.
Additionally, Dollar General’s strong momentum in e-commerce, particularly through partnerships with third-party delivery services like DoorDash and Uber Eats, has been a significant growth driver. The company’s Back to Basics initiatives, which focus on inventory management and SKU optimization, are also contributing to gross margin expansion. These strategic efforts, along with successful store remodels, support the confidence in Dollar General’s continued top-line momentum and justify the Buy rating.
Ohmes covers the Consumer Defensive sector, focusing on stocks such as Walmart, Target, and Dollar General. According to TipRanks, Ohmes has an average return of 7.8% and a 55.96% success rate on recommended stocks.
In another report released yesterday, Bernstein also reiterated a Buy rating on the stock with a $134.00 price target.