Dollar General (DG) posted a "solid" Q1 performance, including a 2.0% growth in comparable sales, Truist said in a note Tuesday.

The report said the firm is benefitting among others from trade-in activity by higher-income consumers, incremental sales from delivery business, and the comparable lift from remodels, while lower-income consumers remain under pressure.

Truist analysts said they are "modestly" raising their 2026/2027 EPS estimates, partly from a lower tax rate.

"We think DG is "interesting" at current levels, but Walmart (WMT, Buy) competition + economic pressures on their core customer keep us cautious," the note said.

Truist raised its price target to $114 from $109 while maintaining its hold rating.

Price: 108.06, Change: -1.88, Percent Change: -1.71