Rothschild Sets $165 Target on Dollar Tree (DLTR) as Rating Moves to Buy

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On February 17, Dollar Tree, Inc. (NASDAQ:DLTR) was upgraded to Buy from Neutral by Rothschild & Co Redburn, which established a $165 price target. Earlier, on February 3, Evercore ISI analyst Michael Montani reduced the firm’s price target to $160 from $165 while maintaining an In Line rating, reflecting adjustments within its Retail Broadlines & Hardlines coverage universe.

During the company’s third-quarter 2025 earnings call, Dollar Tree, Inc. (NASDAQ:DLTR) delivered results characterized by solid execution and accelerating momentum. Comparable sales increased 4.2%, supported by an improving discretionary mix, which expanded 40 basis points to 50.5%. Adjusted earnings per share of $1.21 exceeded prior guidance, reflecting favorable merchandise margin trends and operating discipline. For the fourth quarter, management expects comparable sales growth of 4%–6%, translating to projected net sales between $5.4 billion and $5.5 billion, and adjusted EPS of $2.40 to $2.60.

Dollar Tree, Inc. (NASDAQ:DLTR) raised its full-year outlook, guiding comparable sales growth of 5%–5.5% and adjusted EPS of $5.60 to $5.80, with anticipated net sales of $19.35 billion to $19.45 billion. Gross margin is expected to expand 50 to 60 basis points for the year, driven by sustained strength in merchandise margins, lower freight expense, and occupancy leverage, partially offset by markdown activity and shrinkage.

Dollar Tree, Inc. (NASDAQ:DLTR) is a leading North American discount retailer known for its extreme value merchandising model, offering a broad assortment of consumables, seasonal goods, and discretionary items at highly accessible price points.

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