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On Thursday, Loop Capital analysts increased the price target for Dollar Tree stock (NASDAQ: NASDAQ:DLTR) to $85 from a previous target of $75. The firm maintained a Hold rating for the stock. According to InvestingPro analysis, Dollar Tree is currently trading below its Fair Value, with analyst targets ranging from $70 to $109.
The decision follows Dollar Tree’s first-quarter fiscal 2025 performance, which exceeded expectations. Despite this, Loop Capital expressed concerns about the company’s future earnings potential. Analysts highlighted management’s forecast of a significant year-over-year earnings decline in the second quarter of fiscal 2025. This aligns with InvestingPro data showing eight analysts have recently revised their earnings estimates downward.
Loop Capital also questioned Dollar Tree’s ability to handle tariff challenges in the second half of 2025. These concerns led the firm to maintain its Hold rating, even as it acknowledged the company’s improved top-line trends. The stock has shown resilience with an 18.25% year-to-date return, trading at a P/E ratio of 19.08.Get access to more valuable insights and detailed analysis with a InvestingPro subscription, which includes exclusive ProTips and comprehensive financial metrics.
The analysts noted the pending sale of Family Dollar as a positive development for Dollar Tree. However, they warned that the company would face increased exposure to imported and discretionary merchandise.
Loop Capital’s revised price target reflects Dollar Tree’s enhanced revenue trends, but the firm remains cautious about the company’s earnings guidance for fiscal 2025.
In other recent news, Dollar Tree has seen significant developments concerning its financial outlook and analyst evaluations. JPMorgan upgraded Dollar Tree’s stock rating from Neutral to Overweight, citing growth potential and strategic initiatives, including the expansion of the MPP 3.0 format store. The analysts also increased the price target to $111, highlighting the company’s strategies for tariff mitigation and cost recapture. BMO Capital raised its price target for Dollar Tree to $85, maintaining a Market Perform rating, influenced by the company’s strong first-quarter sales and share repurchases. However, BMO expressed concerns over challenges from additional tariff and labor costs in the second quarter.
Wells Fargo (NYSE:WFC) reiterated its Overweight rating on Dollar Tree, maintaining a $105 price target, despite acknowledging potential short-term earnings risks. The analysts emphasized the company’s regained consumer relevance and possible strong earnings gains in 2026. Morgan Stanley (NYSE:MS) increased its price target to $96, maintaining an Equalweight rating, and revised its EPS estimates upward for 2025 and 2026, reflecting Dollar Tree’s strong first-quarter performance. Lastly, Goldman Sachs raised the price target to $94 despite maintaining a Sell rating, noting Dollar Tree’s earnings beat and the continued success of its multi-price point strategy. These developments collectively underscore the varied perspectives among analysts regarding Dollar Tree’s financial trajectory and strategic positioning.
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