Dollar General price target lowered to $92 from $94 at Bernstein

Bernstein lowered the firm’s price target on Dollar General (DG) to $92 from $94 and keeps an Outperform rating on the shares. While the path to a potential turnaround is likely non-linear, the firm is seeing early signs of improvement based on its proprietary Reddit sentiment analysis. Bernstein also sees meaningful gross margin recovery opportunities but expects Dollar General to reinvest gains in labor and stores. Meanwhile, the firm doesn’t think Dollar General’s business model is fundamentally broken as low-income consumers cannot afford to shop online as frequently. Against low expectations, it sees upside from here.