12:35 PM EDT, 06/03/2025 (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 lift our 12-month target to $118 from $75, 18x our FY 27 (Jan.) EPS of $6.55 (up from $5.99; FY 26 up to $5.82 from $5.34). This valuation places the stock near the high end of its historical trading range, which we believe is justified by encouraging F1Q (Apr-Q) results that suggest the "Back to Basics" strategy may be gaining early traction. DG ended the quarter on a strong note, with positive momentum continuing into May as traffic trends turned positive. Heightened focus on store remodels and closing underperforming stores should support same-store-sales trends going forward. We think tariff risks are manageable and gross margins should continue to expand due to improvements in shrink (e.g., inventory theft/damages). That said, our primary concern is the extent to which the company may need to further invest in pricing or wages to sustain same-store-sales momentum. This presents risks in achieving its FY 29 (CY 28) operating margin target of 6%-7%, compared to 4.2% last year.