Dollar Tree stock holds steady as Piper Sandler maintains Neutral rating

Published 02/09/2025, 14:26
Dollar Tree stock holds steady as Piper Sandler maintains Neutral rating

Investing.com - Piper Sandler has reiterated its Neutral rating and $112.00 price target on Dollar Tree (NASDAQ:DLTR), currently trading at $109.17, ahead of the retailer’s second-quarter earnings report scheduled for Wednesday morning. According to InvestingPro data, 13 analysts have recently revised their earnings estimates upward, with price targets ranging from $70 to $138.

The firm notes that investor expectations for Dollar Tree appear relatively high, with many anticipating a second-quarter comparable sales growth of at least 6.5%, compared to the sell-side consensus estimate of 5.4%.

Piper Sandler indicates that investors will focus particularly on transaction comparable sales versus ticket size, especially considering views that Dollar Tree implemented price increases during the second quarter.

The research firm observes there is ongoing debate among investors about whether Dollar Tree should raise its guidance by more than just the amount of any potential second-quarter earnings beat, with some investors preferring to see a more conservative outlook for the second half of the year.

Piper Sandler also mentioned that competitor Dollar General already reported strong results last week, delivering both an earnings beat and raised guidance. For deeper insights into Dollar Tree’s financial health, competitive position, and detailed analysis, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Dollar Tree has seen several analysts raise their price targets on its stock. UBS increased its target to $135, citing a sequential acceleration in comparable store sales during the second quarter. Piper Sandler also raised its target to $112, noting that Dollar Tree’s multi-price consumables are now only 2.0% higher on average than comparable items at Walmart. BMO Capital adjusted its price target to $110 and revised its fiscal second-quarter 2026 comparable sales estimate to 7.5%, while also increasing its earnings per share forecast to $0.48. Meanwhile, Bernstein raised its price target to $109, attributing the increase to positive credit card data. In corporate developments, Dollar Tree announced the appointment of John S. Mitchell, Jr. as the new Chief Legal Officer and Corporate Secretary, effective August 11, 2025. Mitchell has been with the company since 2021 and will succeed Jonathan B. Leiken. These updates reflect a period of strategic changes and analyst optimism for the company.

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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