02:38 PM EDT, 06/04/2025 (MT Newswires) -- Dollar Tree ( DLTR ) is well-positioned for upward earnings revisions and additional multiple expansion, Truist said Wednesday in post-earnings note.

The company provided fiscal Q2 earnings per share guidance below Street consensus amid short-term pressures from its shared services agreement prior to the sale of its Family Dollar business and tariff-related concerns, Truist noted. However, the company is projecting Q2 same-store sales to be up around 5%. The brokerage said it expects Q2 EPS pressure to be short-lived.

Truist noted the company has raised its EPS outlook for fiscal 2025 and started to accelerate shareholder returns through "aggressive" share repurchases.

The company's strong fiscal Q1 results were backed by a 5.4% increase in same-store sales, which in turn was due to gains in traffic and ticket, the brokerage said.

Truist has a buy rating and a $100 price target on the company.

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