Dollar General Corp (NYSE:DG) appears to have several catalysts supporting its gross margin and revenue momentum, according to BofA Securities analyst Robert Ohmes.

The Dollar General Analyst: Ohmes maintained a Buy rating and price target of $175.

The Dollar General Thesis: The company's new store format has "more open sight lines and could drive increased transactions and ticket through greater browsing and a treasure hunt shopping experience," Ohmes said in the note.

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He added that a visit to Dollar General's headquarters and store in the new format suggested various catalysts, including:

  • Gross margin support from in-house retail media network DG Media Network and improving shrink and damages
  • Revenue momentum from remodels, non-consumables growth, and digital and delivery expansion

The company is now "well to achieve its long-term 6-7% operating margin target," the analyst wrote.

Dollar General targets 2,000 Project Renovate and 2250 Project Elevate remodels in calendar year 2026, "implying an 80bp tailwind and further turnover improvement," he added.

DG Price Action: Shares of Dollar General had risen by 0.67% to $118.67 at the time of publication on Wednesday.

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