Discount variety store Dollar Tree (NASDAQ:DLTR) gained in trading after J.P. Morgan analyst Matthew Boss upgraded the stock to a Buy from a Hold. The analyst also raised the price target to $157 from $122, implying an upside potential of 18.3% at current levels. The analyst foresees double-digit EPS growth over the long term driven by core and Family Dollar stores.
Boss highlighted the retail chain’s limited exposure to Red Sea shipping disruptions and believes it is on its way to achieving earnings of $10 per share by FY26. The analyst added that Dollar Tree may benefit from deflation, reinvesting in product quality, and reintroducing discontinued items amid inflationary pressures.
What Is the Price Target for DLTR?
Analysts remain cautiously optimistic about DLTR stock with a Moderate Buy consensus rating based on eight Buys and two Holds and Sell each. Over the past year, DLTR has slid by more than 10%, and the average DLTR price target of $149.36 implies an upside potential of 10.5% at current levels.
