Dollar General Corp. DG reported Thursday third-quarter results which were well interpreted by two analysts.

The Analysts

KeyBanc Capital Markets analyst Bradley Thomas maintains an Overweight rating on Dollar General with a $180 price target.

The Buckingham Research Group's Bob Summers maintains at Buy, $178 price target.

KeyBanc: Built For Growth And Defense

Dollar General reported an EPS beat of $1.42 in the quarter due to stronger than expected sales and a lower than the expected tax rate, Thomas wrote in a note. Same-store sales were higher by 4.6% which was 1.6 percentage points better than expected. Encouragingly, comps also accelerated on a one-year and three-year basis but was slightly lower on a two-year basis.

Looking forward Dollar General's "wealth of initiatives," including a focus on DG Fresh, DG Go!, and Fast Track represent catalysts that can spur growth or emphasize the retailer's defensiveness nature. Investors should expect continued top-line growth and longer-term share gains.

Buckingham: 'Everything Is Working'

Dollar General's earnings report shows that not only is "everything is working" but the momentum can continue moving forward, Summers wrote in a note. Management is showing ongoing strategic initiatives are generating results that helps support margins, sales, same-store sales and EPS.

The company's proposition of offering attractive value in the retail sector is backed by the "counter-cyclical nature" of the business, the analyst wrote. However, strong upside in the stock will be dependent on earnings revisions moving higher after a strong multiple expansion over the past year.

Dollar General Price Action

Shares of Dollar General closed Friday down 0.25% at $154.72.