Citi analyst Paul Lejuez assigned a Buy rating on Dollar Tree today and set a price target of $124.00.
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Paul Lejuez has given his Buy rating due to a combination of factors that suggest a positive outlook for Dollar Tree. The company’s third-quarter performance, although largely anticipated, shows resilience in traffic and sales despite recent price increases. This indicates that consumers are adapting to the new pricing strategy, which is a positive sign for future revenue growth. Additionally, the improvement in foot traffic data leading up to Halloween suggests a strong consumer response during peak periods, which bodes well for the upcoming holiday season.
Furthermore, Dollar Tree’s management has maintained a confident stance by reiterating its fiscal year 2025 comparable sales guidance and is expected to narrow it to a more optimistic range. This confidence, coupled with the expected share price return of 16.8%, supports the Buy rating. The company’s ability to navigate pricing elasticity and maintain consumer interest despite economic challenges highlights its potential for sustained growth, making it an attractive investment opportunity.
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.