BMO Capital raises Dollar Tree stock price target to $110 on strong comps

Published 06/08/2025, 15:28
BMO Capital raises Dollar Tree stock price target to $110 on strong comps

Investing.com - BMO Capital has raised its price target on Dollar Tree (NASDAQ:DLTR) to $110.00 from $85.00 while maintaining a Market Perform rating. The stock, currently trading at $116.56, has shown remarkable strength with a 54.34% gain year-to-date and is hovering near its 52-week high of $116.50.

The firm increased its fiscal second-quarter 2026 comparable sales estimate to 7.5% from 5% based on its data analysis. BMO also revised its Q2 earnings per share forecast upward to $0.48 from $0.33, compared to Dollar Tree’s guidance range of $0.34-$0.37.

For the full fiscal year 2026, BMO now projects earnings per share of $5.52, up from its previous estimate of $5.36, falling within Dollar Tree’s guidance range of $5.15-$5.65.

The new $110 price target represents 20 times BMO’s revised fiscal 2026 EPS estimate of $5.52, which the firm notes is in line with Dollar Tree’s peak valuation multiple of approximately 19-20x before its Family Dollar acquisition.

Despite the higher price target, BMO maintained its Market Perform rating, citing concerns about unclear tariff mitigation strategies and the potential need for Dollar Tree to rely more on pricing adjustments that could affect merchandise quality long-term.

In other recent news, Dollar Tree has seen multiple updates to its stock price targets and ratings from various financial firms. Guggenheim raised its price target for Dollar Tree to $130 from $100, maintaining a Buy rating, citing a 10.6x multiple of its 2026 earnings estimate. Similarly, Wells Fargo (NYSE:WFC) increased its price target to $130 from $105, reflecting confidence in Dollar Tree’s multi-price strategy. Barclays (LON:BARC) upgraded Dollar Tree from Equalweight to Overweight and raised the price target to $150, highlighting growth potential following the Family Dollar sale. Bernstein also adjusted its price target from $86 to $109 while keeping a Market Perform rating.

In corporate news, Dollar Tree announced John S. Mitchell, Jr. as the new Chief Legal Officer, effective August 11, 2025, succeeding Jonathan B. Leiken. Mitchell has been with the company since 2021 and previously worked at the law firm Williams Mullen (NASDAQ:BINI). These developments indicate a period of strategic adjustments and positive sentiment from analysts regarding Dollar Tree’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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