Street Calls of the Week
Investing.com - KeyBanc has reiterated its Sector Weight rating on Dollar Tree (NASDAQ:DLTR) following the company’s recent Investor Day presentation. The company has shown strong momentum, with shares surging 7.81% in the past week and impressive 31.09% over the last six months.
The retailer highlighted several improvement opportunities across merchandising, stores, and operations during its presentation to investors, which support Dollar Tree’s newly established long-term earnings per share growth targets of 8-10%. According to InvestingPro data, the company maintains a healthy financial position with strong cash flows and has been actively buying back shares, demonstrating management’s confidence in the business.
KeyBanc noted that in the near term, investors will likely remain focused on comparable store transaction metrics, though the firm believes tariff-related price increases are likely having only a temporary impact on this performance indicator.
The investment bank acknowledged that while competitive risks in the discount retail sector remain elevated, Dollar Tree has significant opportunities to improve its business operations over the long term.
KeyBanc analyst Bradley Thomas maintained the Sector Weight rating without specifying a price target for the discount retailer’s shares.
In other recent news, Dollar Tree reaffirmed its third-quarter and fiscal 2025 outlook while announcing plans for annual earnings per share growth of 12-15% from fiscal 2026 through 2028. This announcement was made during its 2025 Investor Day, where the company detailed its operational strategy following the separation from Family Dollar. Additionally, Dollar Tree has partnered with Legion Technologies to implement a workforce management platform across its North American operations, which includes over 9,000 stores and 18 distribution centers.
Truist Securities reiterated its Buy rating on Dollar Tree with a price target of $129, despite recent bearish sentiment due to concerns about sales slowdown and financial volatility. Meanwhile, KeyBanc maintained a Sector Weight rating on the stock, noting that upcoming investor conferences might focus on consumer responses to price increases. Wells Fargo lowered its price target for Dollar Tree to $115 from $130, maintaining an Overweight rating while expressing concerns about the company’s multi-price strategy and softened comparable sales. These developments reflect a mix of strategic initiatives and investor sentiment surrounding Dollar Tree’s financial and operational outlook.
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