Dollar Tree, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Zhihan Ma from Bernstein maintained a Hold rating on the stock and has a $100.00 price target.
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Zhihan Ma’s rating is based on a combination of factors that impact Dollar Tree’s financial outlook. The company has experienced strong momentum in the first half of 2025, driven by its multi-price rollout and favorable macroeconomic conditions. However, despite performing well in gross margin, Dollar Tree has not met expectations in EBIT margin due to increased labor costs and general liability accruals.
Looking ahead, Zhihan Ma anticipates that Dollar Tree will maintain some price increases and benefit from new store maturation, although the pace of store growth is not expected to increase significantly due to high operational costs. While gross margins are expected to remain stable or slightly improve, EBIT margins are projected to recover but remain flat due to persistent high operational costs. Consequently, the Hold rating reflects the need for investors to see a sustainable upside before considering a more favorable outlook.
In another report released on September 23, Evercore ISI also maintained a Hold rating on the stock with a $105.00 price target.