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Why Piper Sandler Sees Dollar General (DG)’s 2026 Growth Setup as Less Straightforward Than It Looks
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Dollar General Corporation (NYSE:DG) is one of the stocks most affected by inflation. On March 13, 2026, Piper Sandler maintained a Neutral rating on Dollar General and raised its price target to $133 from $132 after the company’s fourth-quarter results. The firm said Dollar General delivered a strong quarter, while fiscal 2026 guidance came in roughly in line with consensus. Piper’s more notable point was that implied 2026 EPS growth looked a bit softer, partly because the company executed better than expected on shrink reduction in 2025, which pulled some of that benefit forward. Piper also highlighted operating initiatives that appeared to be gaining traction, including an 80-basis-point comp benefit from delivery in the quarter and 17% growth in Value Valley $1-item sales. That note followed Dollar General’s March 12 report of fourth-quarter fiscal 2025 net sales of $10.9 billion, up 5.9% year over year, with same-store sales up 4.3%, driven by a 2.6% increase in customer traffic and a 1.7% increase in average transaction amount. Diluted EPS rose to $1.93 from $0.87 a year earlier, while operating profit more than doubled to $606.3 million. For fiscal 2026, the company guided diluted EPS to about $7.10 to $7.35. Dollar General Corporation (NYSE:DG) is a discount retailer that sells consumables, seasonal goods, home products, and apparel through thousands of small-box stores across the United States. While we acknowledge the potential of DG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. Follow Insider Monkey on Google News.