Rothschild Upgrades Dollar Tree to Buy with $165 Target; Evercore Cuts to $160
On February 17, Rothschild & Co Redburn upgraded Dollar Tree to Buy from Neutral and set a $165 price target, while Evercore ISI trimmed its target to $160 on February 3. Dollar Tree raised full-year comparable sales guidance to 5%–5.5%, forecasting net sales of $19.35–$19.45 billion and EPS of $5.60–$5.80.
1. Analyst Rating Changes
On February 17, Rothschild & Co Redburn moved its rating on Dollar Tree from Neutral to Buy and established a $165 price target. Earlier, on February 3, Evercore ISI reduced its price target to $160 while maintaining an In Line rating, reflecting adjustments in its Retail Broadlines & Hardlines coverage.
2. Third-Quarter 2025 Results
During Q3 2025, Dollar Tree reported comparable sales growth of 4.2%, driven by a 40 basis-point improvement in its discretionary mix to 50.5%. Adjusted EPS came in at $1.21, surpassing prior guidance due to favorable merchandise margin trends and disciplined cost management.
3. Outlook for Q4 and Full Year
For Q4, Dollar Tree expects comparable sales growth of 4%–6%, net sales of $5.4–$5.5 billion and adjusted EPS of $2.40–$2.60. Full-year guidance was raised to 5%–5.5% comps, $19.35–$19.45 billion in net sales, EPS of $5.60–$5.80 and gross margin expansion of 50–60 basis points.