Dollar General Price Targets Raised to $165 and $168 Following 4.6% Sales Growth
Guggenheim raised Dollar General’s price target to $165 from $140 and UBS lifted its target to $168 from $143, retaining Buy ratings on accelerating top-line momentum. In Q3 2025, Dollar General delivered 4.6% net sales growth to $10.6 billion, expanded gross margin to 29.9% and grew EPS 43.8% to $1.28.
1. Analysts Raise Price Targets
On February 17, Guggenheim raised its price target for Dollar General from $140 to $165 while maintaining a Buy rating, citing an acceleration in top-line momentum as evidence of an early-stage sustained turnaround. Earlier on February 6, UBS increased its target from $143 to $168, also with a Buy rating, underscoring confidence in margin expansion beyond shrinkage improvements.
2. Q3 2025 Financial Performance
During the third quarter of fiscal 2025, Dollar General reported net sales of $10.6 billion, up 4.6%, with same-store sales rising 2.5% driven by higher customer traffic. Gross profit margin expanded by 107 basis points to 29.9%, operating profit climbed 31.5% to $425.9 million, and diluted EPS surged 43.8% to $1.28.
3. Fiscal 2025 Guidance and Expansion Plans
For full-year 2025, Dollar General forecasts net sales growth of 4.7%–4.9%, same-store sales growth of 2.5%–2.7% and EPS between $6.30 and $6.50. Capital expenditures are targeted at the low end of a $1.3 billion–$1.4 billion range, funding approximately 4,885 real estate projects, including 575 new U.S. stores and up to 15 in Mexico.