Barclays Reiterates Overweight on Dollar Tree with $149 Target, Raises 2026 EPS
Barclays reaffirmed an Overweight rating on Dollar Tree with a $149 price target after it beat Q4 guidance, raising its 2026 EPS estimate to $6.80 from $6.78, including a $0.09 buyback benefit. It forecasts 3.6% comparable sales growth, flat gross margin, and a 40 basis point operating margin lift to 9%.
1. Barclays Reaffirms Overweight Rating
Barclays maintained its Overweight rating on Dollar Tree and set a $149 price target, emphasizing confidence in the company’s merchandising transformation and overall store performance.
2. Raised 2026 Earnings Estimate
The firm raised its 2026 EPS estimate to $6.80 from $6.78, factoring in a $0.09 per share boost from share repurchases and reflecting a modest fourth-quarter earnings beat versus guidance.
3. Sales Growth and Margin Improvements
Barclays projects 3.6% comparable sales growth with potential upside to 4%, expects gross margins to remain flat, and anticipates a 40 basis point operating margin improvement to 9% driven by corporate SG&A efficiencies.