Wells Fargo maintains overweight rating on Dollar Tree stock

Published 06/05/2025, 05:48 AM
Wells Fargo maintains overweight rating on Dollar Tree stock

On Thursday, Wells Fargo analysts reiterated their Overweight rating on Dollar Tree stock, maintaining a price target of $105.00. Currently trading at $88.62, the stock has seen significant volatility, with analyst targets ranging from $70 to $109. The analysts expressed that the recent stock sell-off following the company’s first-quarter results aligns with their expectations. They noted that Dollar Tree had experienced a strong performance, but there are potential short-term earnings risks. According to InvestingPro, eight analysts have recently revised their earnings expectations upward for the upcoming period.

In their analysis, Wells Fargo highlighted that the first-quarter comparable sales figures demonstrate Dollar Tree’s regained consumer relevance. With a market capitalization of $18.6 billion and a gross profit margin of 35.8%, the company maintains a solid financial position. They also pointed out that the company’s business model could be susceptible to unusual timing issues related to tariffs.

Despite these concerns, Wells Fargo analysts believe that a strong earnings gain in 2026 remains a solid possibility. They continue to support the risk/reward profile of Dollar Tree stock, maintaining their Overweight stance.

Dollar Tree, listed on NASDAQ as DLTR, has been closely watched by investors following its recent market movements. The company’s future earnings potential and market position remain key considerations for stakeholders.

The reiteration of the Overweight rating by Wells Fargo emphasizes their confidence in Dollar Tree’s long-term prospects, despite the current market volatility.

In other recent news, Dollar Tree Inc . (NASDAQ:DLTR) reported its first-quarter 2025 earnings, which exceeded analysts’ expectations with an adjusted earnings per share (EPS) of $1.26, surpassing the forecast of $1.21. However, the company’s revenue of $4.6 billion fell short of projections, despite a year-over-year increase of 11.3%. The company also noted a 5.4% growth in comparable store sales. Analysts from Morgan Stanley raised their price target for Dollar Tree stock to $96, citing the company’s strong first-quarter performance and increasing their EPS estimates for 2025 and 2026. Similarly, Goldman Sachs increased its price target to $94, despite maintaining a Sell rating, due to Dollar Tree’s recent performance and continued success with its multi-price point strategy. KeyBanc maintained a Sector Weight rating, acknowledging the company’s strong first-quarter results but highlighting ongoing tariff challenges. Telsey also raised its price target to $100, recognizing Dollar Tree’s transformation progress and improved operating margins. These developments reflect a complex financial landscape for Dollar Tree, with both positive earnings surprises and challenges in meeting revenue expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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