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Research Alert: CFRA Keeps Hold Opinion On Shares Of Dollar Tree, Inc.
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Dollar Tree, Inc.
May 28, 2025 8:37 AM

11:20 AM EDT, 05/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

DLTR is scheduled to report F1Q (Apr-Q) results on June 4. Ahead of the release, we raise our 12-month target price to $92 from $74, about 15x our FY 27 (Jan.) EPS of $6.12 (down from $6.16; FY 26 EPS raised to $5.24 from $5.19) vs. the 18x long-term mean. Shares have re-rated higher following recent positive tariff developments and the announced divestiture of the underperforming Family Dollar asset. While DLTR's initial FY 26 outlook incorporated only the 10% tariff on Chinese imports from February 2025, we view remaining tariff risks as manageable, supported by mitigation levers like the company's multi-price point rollout (targeting 5,200 stores by year end, up from 2,900 last year), supplier cost concessions, product spec changes, removal of uneconomical items, and shifts in country sourcing. Trade-down behavior from consumers may also support top-line growth. Yet, elevated temporary labor costs tied to the multi-price rollout remain a near-term headwind. Overall, we currently see a balanced risk/reward.

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