Dollar General rises as Gordon Haskett upgrades to 'buy'

Gordon Haskett upgraded Dollar General to “buy” with a $140 price target after meeting with company management. The brokerage said higher-income shoppers are increasingly trading down to Dollar General as elevated gasoline prices pressure household budgets, while lower-income consumers have stabilized and adjusted spending patterns despite higher fuel costs. It also said shoppers are making more frequent trips closer to home and buying fewer items per visit, trends it views as favorable for the retailer.

Dollar General plans to increase seasonal one-dollar items by 40% in the back half of this year. The company said its delivery partnerships have helped attract new customers and take market share from traditional grocery and drug retailers.