Dollar Tree price target lowered to $100 from $109 at Bernstein

Bernstein lowered the firm’s price target on Dollar Tree (DLTR) to $100 from $109 and keeps a Market Perform rating on the shares. The firm notes that a lot has changed since its last Investor Day in 2023, when Dollar Tree guided to mid-single-digit comparable sales, 35.5%-37.5% gross margin, and 14%-15% EBIT margin by FY26 for the Dollar Tree banner. On the top line, Dollar Tree fell short in 2024 but momentum in the first half of 2025 was strong, supported by the multi-price rollout and macro tailwinds. Dollar Tree has performed largely in line on gross margin. However, its EBIT margin has fallen meaningfully short of expectations, even after adjusting out corporate expenses, due to higher labor costs and general liability accruals, Bernstein adds.