Dollar General (DG) should deliver a solid Q4 performance and remain on track to meet its longer-term targets, Oppenheimer said in a note Tuesday. The Q4 results are due March 12.
"We expect a solid Q4 delivery and in line FY26 guide in a high expectation setup," the report said.
The note also pointed to its more consistent top-line delivery and
above expectation gross margin expansion in recent quarters, raising confidence in a ramp towards 6% to 7% operating margins, up from 5% FY25 estimate.
The report said its valuation remains "accommodative" even though the shares are no longer trading at depressed levels.
Oppenheimer raised its price target to $170 from $145 and kept its outperform rating.
Price: 152.47, Change: -0.44, Percent Change: -0.28
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