Buy this discount retailer as a clear path to gains emerges, Telsey says
The sale of one of Dollar Tree’s struggling businesses clear the path forward for the stock to go higher, according to Telsey Advisory Group. The firm upgraded Dollar Tree stock to outperform from market perform on Friday. Telsey also raised its price target to $130 per share from $100, which implies about 16% upside from Thursday’s close. Dollar Tree last month sold Family Dollar for $1 billion to a group of private equity investors. Analyst Joseph Feldman said that makes Dollar Tree a “cleaner story with multi price point expansion to fuel growth.” DLTR YTD mountain Dollar Tree stock in 2025. “We have increased confidence in Dollar Tree now that it is a cleaner story following the sale of Family Dollar in July 2025, with the expansion of multi-price point products and stores, which should yield multi-year growth,” the analyst said. “The combination of systematically expanding the number of multi-price point items, adding new price points, rolling out the 3.0 store format across the chain, and eventually increasing the space allocated to multi-price point items in existing stores is a solid playbook to fuel multi-year growth of sales and profits,” the analyst added. The upgrade comes ahead of Dolla Tree’s second-quarter results due out next week. Analysts on average expect the company to report a 40% year-over-year decline in earnings, LSEG data shows. To be sure, shares have gained more than 50% in 2025. They added 1% in the premarket following the rating change.
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