Analyst Matthew Boss said in a note that he saw "incremental upside opportunity the next two years on both the top line and margins with $1.7 billion annual free cash flow generation by fiscal 2021."
Dollar General shares were trading up 2.1% at $159.56.
The target-price increase came after J.P. Morgan said it hosted Dollar General executives at its recent Europe All Stars Conference in London.
"Management's tone was increased confidence (even relative to our April NYC roadshow) in Dollar General's multiyear road map and defensive growth model," the analyst wrote in a Sept. 23 note.
Dollar General shares have risen about 50% over the past year.