Simeon Gutman, an analyst from Morgan Stanley, maintained the Hold rating on Dollar Tree. The associated price target was raised to $130.00.
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Simeon Gutman has given his Hold rating due to a combination of factors that present a balanced risk/reward scenario for Dollar Tree. The company’s Q3’25 results showed a moderate comparable sales growth, driven by strong seasonal performance, particularly during Halloween. However, a decline in customer traffic raises concerns about potential pressure on future sales growth, especially if traffic does not improve.
Gutman notes that while Dollar Tree’s gross margin guidance for 2025 suggests potential improvements, much of the anticipated upside appears to be already reflected in the current stock price. The stock’s valuation at approximately 19 times the next twelve months’ price-to-earnings ratio suggests limited room for further gains. Consequently, despite some positive trends, uncertainties regarding traffic and top-line growth in 2026 contribute to the Hold rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $114.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DLTR in relation to earlier this year.