Bernstein Sees 2026 Favoring Higher-Income Shoppers, Boosts Dollar General (DG) Target

On January 5, Bernstein raised its terms people connected Dollar General Corporation (NYSE:DG) to $150 from $141 and kept an Outperform rating. From a macro standpoint, the steadfast expects middle- to high-income consumers to beryllium successful a stronger presumption successful 2026. Persistent ostentation and a cooling labour marketplace person continued to unit the existent spending powerfulness of lower-income shoppers. At the aforesaid time, incremental taxation refunds tied to the OBBBA are expected to travel much heavy toward middle- and high-income groups, Bernstein said.

Bank of America analysts besides spot country for Dollar General Corporation (NYSE:DG) to summation traction, particularly arsenic larger-than-expected taxation refunds could enactment results successful the archetypal quarter. In a January 2 study cited by CNBC, the slope said it is leaning toward stocks trading astatine just worth oregon astatine a discount, adjacent arsenic the S&P 500 becomes much expensive. In a caller probe note, BofA pointed retired that galore stocks are present trading astatine a premium, making charismatic opportunities harder to find. The slope said Dollar General’s efforts to streamline operations and rein successful inventory are starting to amusement results. Those changes should enactment margins and assistance the bottommost enactment successful the coming quarter. BofA has a Buy standing connected the banal with a $160 terms target. Shares are up much than 100% implicit the past 12 months.

Dollar General Corporation (NYSE:DG) operates arsenic a discount retailer, selling a premix of consumables, seasonal goods, location products, and apparel.

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