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Demystifying Dollar Tree: Insights From 20 Analyst Reviews

Author: Benzinga Insights | October 06, 2025 09:00am

Dollar Tree (NASDAQ:DLTR) has been analyzed by 20 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 7 7 2 0
Last 30D 0 0 1 0 0
1M Ago 1 0 1 0 0
2M Ago 3 4 5 2 0
3M Ago 0 3 0 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $117.05, a high estimate of $140.00, and a low estimate of $75.00. Observing a 5.65% increase, the current average has risen from the previous average price target of $110.79.

price target chart

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Dollar Tree. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Zhihan Ma Bernstein Lowers Market Perform $100.00 $109.00
Greg Melich Evercore ISI Group Lowers In-Line $105.00 $108.00
John Heinbockel Guggenheim Lowers Buy $125.00 $130.00
Simeon Gutman Morgan Stanley Raises Equal-Weight $105.00 $96.00
Robert Ohmes B of A Securities Raises Underperform $75.00 $70.00
Paul Lejuez Citigroup Lowers Buy $124.00 $130.00
Matthew Boss JP Morgan Raises Overweight $140.00 $138.00
Scot Ciccarelli Truist Securities Raises Buy $129.00 $127.00
Peter Keith Piper Sandler Lowers Neutral $108.00 $112.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $130.00 $130.00
Chuck Grom Gordon Haskett Announces Reduce $95.00 -
Joseph Feldman Telsey Advisory Group Maintains Outperform $130.00 $130.00
Joseph Feldman Telsey Advisory Group Raises Outperform $130.00 $100.00
Greg Melich Evercore ISI Group Raises In-Line $110.00 $108.00
Peter Keith Piper Sandler Raises Neutral $112.00 $93.00
Scot Ciccarelli Truist Securities Raises Buy $127.00 $109.00
Greg Melich Evercore ISI Group Raises In-Line $108.00 $104.00
Edward Kelly Wells Fargo Raises Overweight $130.00 $105.00
Matthew Boss JP Morgan Raises Overweight $138.00 $111.00
Seth Sigman Barclays Raises Overweight $120.00 $95.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Dollar Tree. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Dollar Tree compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of Dollar Tree's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Dollar Tree's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Dollar Tree analyst ratings.

Unveiling the Story Behind Dollar Tree

Dollar Tree operates discount stores across the United States and Canada, with over 8,800 shops under its namesake banner. About 50% of Dollar Tree's sales in fiscal 2024 were consumables (including food, health and beauty, and cleaning products), around 45% variety items (including toys and homewares), and 5% seasonal items. Dollar Tree sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. The retailer has agreed to sell Family Dollar (with about 7,000 stores) to private equity investors for $1 billion.

Breaking Down Dollar Tree's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Dollar Tree's remarkable performance in 3M is evident. As of 31 July, 2025, the company achieved an impressive revenue growth rate of 12.33%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: Dollar Tree's net margin is impressive, surpassing industry averages. With a net margin of 4.12%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Dollar Tree's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 5.02%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Dollar Tree's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.19%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Dollar Tree's debt-to-equity ratio stands notably higher than the industry average, reaching 2.04. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: DLTR

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