Oppenheimer upgrades this discount retailer, names it a favorite defensive play

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Oppenheimer upgrades this discount retailer, names it a favorite defensive play

Dollar General emerged as one of Oppenheimer’s favorite defensive plays heading into a potential economic slowdown. The investment firm upgraded the discount retail chain to an outperform rating from perform. Analyst Rupesh Parikh also set a price target of $130, which points to a 15% advance from current levels. Parikh called Dollar General’s valuation “accommodative” with room for further multiple expansion on the horizon — despite the stock already being up 49% in 2025. DG YTD mountain DG YTD chart Shares of Dollar General surged 16% on Tuesday after the company beat first-quarter earnings and revenue expectations. The company also raised its full-year net sales, diluted earnings per share and same-store sales growth forecasts. “Following the Q1 report, with green shoots on both the top and bottom lines, we are increasingly confident in management’s ability to drive toward longer-term financial targets,” he wrote. “We believe management’s updated guidance could prove conservative on both the top and bottom line driven by existing momentum in the business, including trade-in, and further upside potential as traction with key initiatives build.” Meanwhile, Dollar General’s ability to hedge against deteriorating macro conditions has also made it one of Oppenheimer’s favorite defensive plays. “As we have highlighted in the past, DG’s model has been resilient in recessionary periods. This could drive further money flows in an increasingly uncertain backdrop as the year progresses, in our view,” Parikh added. Most analysts are less sanguine on Dollar General. LSEG data shows that 20 of the 31 who cover the stock rate it a hold, while just 11 have a buy or strong buy rating. The average analyst price target also signals more than 5% downside.

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