Dollar Tree Inc. (DLTR) drew bullish calls from two Wall Street firms, which said conservative earnings guidance, a strong balance sheet and potential cost tailwinds could drive upside even as store traffic remains under pressure.
Why Raymond James Turned Positive on Dollar Tree
Raymond James upgraded Dollar Tree to ‘Outperform’ from ‘Market Perform’ and assigned a $140 price target, implying a 13% upside to the stock’s last closing price.
The firm said the stock now offers a more attractive balance between risk and potential reward. According to Raymond James, Dollar Tree's fiscal 2026 earnings outlook appears cautious, leaving room for stronger-than-expected results if lower fuel costs, possible tariff refunds and share repurchases provide additional support.
For fiscal 2026, the company expects revenue between $20.5 billion and $20.7 billion, driven by 3%-4% comparable-store sales growth. It plans to open about 400 new stores while closing around 75 locations. The company also sees adjusted earnings of $6.70 to $7.10 per diluted share.
The analyst added that these factors could benefit the company even if customer visits do not rebound immediately.
edged 0.5% lower overnight ahead of Thursday.
Goldman Sees Progress In DLTR, But Stays Careful
Goldman Sachs also became more constructive, upgrading the stock to ‘Neutral’ from ‘Sell’ while increasing its price target to $125 from $105.
The firm pointed to improving customer perceptions around pricing and value, along with the retailer's healthy cash position and the possibility of tariff-related reimbursements as positive developments.
However, the firm maintained a measured outlook, noting that store traffic remains soft, customer performance indicators have yet to return to historical levels and intense competition among value-oriented retailers continues to pressure the sector.
The company is scheduled to report its Q2 earnings in September, with analysts projecting $4.85 billion in revenue and $1.09 per share in earnings.
DLTR Retail View
On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory. The stock saw a 50% increase in message volume over the past year, with a 1.8% gain in watchers.
DLTR stock has gained 18% in the last year.