Dollar General Corporation (DG) Bundle
JPMorgan Upgrades Dollar General to Overweight Citing Growth Prospects
JPMorgan upgraded Dollar General (NYSE:DG) from Neutral to Overweight on Dec 18, 2025, and assigned a price target of **$166** USD. The financial institution cited expectations for sustained same-store sales growth and expanding profitability as primary drivers for the rating change.
Analysts at the firm indicated that Dollar General is positioned to generate same-store sales growth of **2%** to **3%** or higher over multiple years. This outlook is supported by new store openings and renovation initiatives expected to contribute approximately **200 basis points** to growth. Additional drivers include a discretionary merchandise reset and the Value Valley initiative.
The firm highlighted a supportive macroeconomic environment for the company's core demographic, noting tailwinds from consumer trade-down behavior and improving employment conditions. JPMorgan modeled the following performance expectations:
- Same-store sales growth of approximately **2.5%**
- Net store growth between **1%** and **2%**
- Annual gross margin expansion of approximately **30 basis points**
Margin gains are expected to result from improved initial markups, reduced shrink, favorable merchandise mix, and growth in DG Media. Further efficiencies are anticipated through transportation improvements and private-brand penetration. Analysts projected SG&A leverage at comparable sales growth exceeding **3%**, leading to estimated earnings per share growth of **12%** to **13%**.
Dollar General is also expected to generate more than **$1 billion** USD in annual free cash flow after dividends. For more information on the company's background and strategy, see the DG-history-mission-ownership and DG-mission-vision. Investors may also review the DG-financial-health and DG-investor-profile for additional financial context.
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