12:50 PM EDT, 08/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target to $126 from $118, about 18x our FY 27 (Jan.) EPS of $6.98 (up from $6.55; FY 26 raised to $6.26 from $5.82). This multiple places the stock near the high end of its historical trading range, which we believe is warranted by encouraging year-to-date results that suggest the "Back to Basics" strategy is gaining traction. DG has delivered two straight quarters of solid comp growth (+2.4% in FQ1; +2.8% in FQ2), benefiting from customer trade-down and resilient demand among its core lower-income households, despite weak overall consumer sentiment. We attribute this momentum to better execution, including cleaner stores, stronger in-stocks, and improved labor availability, which are also driving notable reductions in shrink and inventory damages. In addition, ongoing store renovations should support stronger comp sales over the next few years, which is critical if DG aims to restore operating margins to 6%-7% within three to four years (vs. the 4.8% operating margin forecasted this fiscal year).