Loop Capital raises Dollar General stock price target to $120 on improved store execution
Investing.com
Published Jul 10, 2025 08:02AM ET
Investing.com - Loop Capital raised its price target on Dollar General (NYSE:DG), a prominent player in the Consumer Staples Distribution & Retail industry with $41.1 billion in revenue, to $120.00 from $110.00 on Thursday, while maintaining a Hold rating on the stock.
The price target increase follows Loop Capital's updated store experience tracker, which evaluates cleanliness, merchandise in-stock levels, and store associate engagement at several Dollar General locations in downtown Chicago and Manhattan suburbs. The company's strong operational metrics, as revealed by InvestingPro data, show a healthy current ratio of 1.23, indicating sufficient liquidity to maintain store operations.
Loop Capital's checks indicate that store-level execution at Dollar General continues to improve, primarily driven by increased labor hours and a greater emphasis on customer service.
Despite the improved store performance warranting the higher price target, Loop Capital maintained its Hold rating on Dollar General stock.
The firm cited concerns about Supplemental Nutrition Assistance Program (SNAP) benefit reductions in the recently enacted Trump Administration's One Big Beautiful Bill as a factor in its cautious stance.
In other recent news, Dollar General has seen several positive developments that could interest investors. UBS analysts raised the price target for Dollar General to $128, maintaining a Buy rating, citing the company's growth potential and robust operating income. They highlighted Dollar General's ability to achieve a 6-7% operating margin, which could more than double its earnings per share over the next few years. BMO Capital also adjusted their outlook, raising the price target to $115 while maintaining a Market Perform rating, noting significant improvements in the company's first-quarter 2025 performance and successful back-to-basics strategies.
Loop Capital increased the price target to $110, maintaining a Hold rating, and expressed confidence in Dollar General's fiscal first-quarter 2025 results, which showed better-than-expected revenue and margins. The analysts noted the company's turnaround plan is progressing well, with raised guidance for 2025. Meanwhile, Bernstein SocGen reiterated an Outperform rating with a price target of $126, emphasizing Dollar General's gross margin recovery opportunities. They identified these opportunities as underappreciated, particularly in shrink and damages reduction.
These developments reflect a broader positive sentiment among analysts about Dollar General's potential for margin improvement and earnings growth. Despite some challenges, the company's strategic momentum and improved execution have been recognized as factors contributing to its recent performance. As Dollar General continues to address its margin challenges, analysts remain optimistic about its future prospects.
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Written By: Investing.com
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