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Investing.com - JPMorgan has raised its price target on Dollar Tree (NASDAQ:DLTR) to $140 from $138 while maintaining an Overweight rating on the stock. The new target represents significant upside from the current price of $102.03, though InvestingPro analysis suggests the stock is currently fairly valued.
The firm cited multiple growth drivers that could help Dollar Tree become a double-digit EPS compounder over multiple years. The company’s current EPS stands at $5.18, with analysts forecasting growth to $5.62 in the coming fiscal year.
JPMorgan highlighted the expansion of Dollar Tree’s MPP 3.0 format stores as a key driver for both top-line and bottom-line growth at the company’s core banner.
The investment bank also identified several idiosyncratic bottom-line drivers, including tariff mitigation strategies, MPP expansion, one-time cost recapture, and corporate expense leverage following the sale of the Family Dollar business.
JPMorgan noted that capital allocation could serve as an additional catalyst for Dollar Tree’s stock performance going forward.
In other recent news, Dollar Tree Inc . reported its second-quarter earnings for 2025, significantly exceeding expectations with an adjusted earnings per share (EPS) of $0.77, compared to the forecasted $0.40. The company’s revenue reached $4.6 billion, slightly above analyst projections. Despite these positive earnings results, Dollar Tree’s stock experienced a decline in pre-market trading, attributed to broader market concerns and future guidance. Additionally, Truist Securities adjusted its price target for Dollar Tree to $129 from $127, maintaining a Buy rating on the stock. This adjustment followed Dollar Tree’s reported comparable sales growth of 6.5%, which surpassed Truist’s estimate of 6.0%. These developments underscore the company’s robust performance in the recent quarter, though investor sentiment remains cautious.
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