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Rothschild Sets $165 Target on Dollar Tree (DLTR) as Rating Moves to Buy

We recently published an article titled 12 Best Retail Stocks to Buy According to Analysts.

On February 17, Dollar Tree, Inc. (NASDAQ:DLTR) was upgraded to Buy from Neutral by Rothschild & Co Redburn, which established a $165 price target. Earlier, on February 3, Evercore ISI analyst Michael Montani reduced the firm’s price target to $160 from $165 while maintaining an In Line rating, reflecting adjustments within its Retail Broadlines & Hardlines coverage universe.

During the company’s third-quarter 2025 earnings call, Dollar Tree, Inc. (NASDAQ:DLTR) delivered results characterized by solid execution and accelerating momentum. Comparable sales increased 4.2%, supported by an improving discretionary mix, which expanded 40 basis points to 50.5%. Adjusted earnings per share of $1.21 exceeded prior guidance, reflecting favorable merchandise margin trends and operating discipline. For the fourth quarter, management expects comparable sales growth of 4%–6%, translating to projected net sales between $5.4 billion and $5.5 billion, and adjusted EPS of $2.40 to $2.60.

Dollar Tree, Inc. (NASDAQ:DLTR) raised its full-year outlook, guiding comparable sales growth of 5%–5.5% and adjusted EPS of $5.60 to $5.80, with anticipated net sales of $19.35 billion to $19.45 billion. Gross margin is expected to expand 50 to 60 basis points for the year, driven by sustained strength in merchandise margins, lower freight expense, and occupancy leverage, partially offset by markdown activity and shrinkage.

Dollar Tree, Inc. (NASDAQ:DLTR) is a leading North American discount retailer known for its extreme value merchandising model, offering a broad assortment of consumables, seasonal goods, and discretionary items at highly accessible price points.

While we acknowledge the potential of DLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DLTR and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Data Storage Stocks to Buy Right Now and 12 Best Retail Stocks to Buy According to Analysts

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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