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Jefferies reiterated its Buy rating and $285.00 price target on Dollar General (NYSE:DG), noting it believes investors are overly focused on the near term while missing the long-term opportunity of DD% EPS growth beyond 2023.
The firm estimates 2027 EPS to be $17.11 (vs. consensus of $16.38), representing over 60% growth from 2022 levels, driven by market share gains ahead and unit expansion.
Looking to fiscal 2023, Jefferies expects the company’s consumable sales growth to be at least in line with the market. The company is expanding its produce offering to >5K stores in 2023 with the long-term goal of >10K. “We quantified the consumables market share benefit of adding produce to stores, and we believe DG’s share could grow to 2.6% in 2027 vs. 2.0% today,” added Jefferies.
The company announced today the promotion of Kelly Dilts to Executive Vice President and CFO effective May 1, 2023. Dollar General’s current President and CFO John Garratt will retain his role as President until his planned retirement on June 2, 2023.
