Telsey Advisory Maintains Market Perform Rating on Dollar Tree (DLTR), Lifts PT

On May 27, Telsey Advisory Group analyst Joseph Feldman upped the price target on Dollar Tree, Inc. (NASDAQ:DLTR)’s stock to $95.00 from $82.00, while maintaining a “Market Perform” rating. The analyst’s statement exhibited the company’s strategic initiatives. The company expects capital expenditures to be between $1.2 billion - $1.3 billion, including ~400 new Dollar Tree store openings.

The analyst lauded Dollar Tree, Inc. (NASDAQ:DLTR)’s expansion of multi-price point assortment, which is being integrated throughout categories and aisles in the 3.0 format.

Notably, the company ended FY 2024 with ~2,900 Dollar Tree 3.0 multi-price format stores, consisting of 2,600 conversions and 300 new stores. Dollar Tree, Inc. (NASDAQ:DLTR) continues to focus on enhancing value, convenience, and discovery for its customers, which can fuel productivity and profitability.

The analyst further highlighted the strength of Dollar Tree, Inc. (NASDAQ:DLTR)’s balance sheet, reflecting that it is well-placed to support potential share repurchases. The company has $1.3 billion of cash and cash equivalents at year-end, with no revolver or commercial paper balances. Its leverage stands below 2.5x. The sales from Dollar Tree are expected to be between $4.5 billion - $4.6 billion in Q1 2025.

While we acknowledge the potential of DLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than DLTR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.