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Investing.com - Piper Sandler has raised its price target on Dollar Tree (NASDAQ:DLTR) to $112.00 from $93.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock has delivered an impressive 49.53% return year-to-date, with analysis suggesting the stock is currently slightly undervalued.
The research firm’s analysis found that multi-price consumables at Dollar Tree were 2.0% higher than comparable items at Walmart (NYSE:WMT), on average. This represents an improvement from March 2025, when Dollar Tree’s prices carried a 7.1% premium to Walmart, though it marks a deterioration from June 2024, when the premium was just 0.4%. With a market capitalization of $23.36 billion and a P/E ratio of 22.12, Dollar Tree maintains a significant presence in the retail sector.
Dollar Tree offered better pricing than Walmart 32% of the time, up from 15% in March 2025 and 22% in June 2024. The retailer has also quickly increased prices to $1.50 or more on several items that were previously priced at $1.25.
Piper Sandler expects Dollar Tree to exceed expectations for both comparable sales and gross margin in its fiscal second quarter. The company reported 5.4% year-over-year comparable sales growth in the first quarter, with share gains accelerating toward the end of that period driven by higher-income customers and strong trade-in. InvestingPro reveals 10 analysts have revised their earnings upward for the upcoming period, with the next earnings report due on September 3, 2025. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis with a subscription.
The consensus forecast for Dollar Tree’s second-quarter comparable sales growth stands at 5.3%, above the company’s guidance for growth at the higher end of the 3% to 5% range. The firm believes both comparable sales and gross margin are benefiting from the raised prices.
In other recent news, Dollar Tree has seen several analysts revise their stock price targets upward. Guggenheim has increased 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) raised its target to $130 from $105, reflecting confidence in the company’s multi-price strategy. BMO Capital also adjusted its price target to $110 from $85, revising its fiscal second-quarter 2026 comparable sales estimate to 7.5% and increasing its Q2 earnings per share forecast to $0.48. Bernstein SocGen Group followed suit, raising its target to $109 from $86, while maintaining a Market Perform rating. These adjustments come amid strengthening share prices and positive credit card data. Additionally, Dollar Tree has appointed 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).
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