Telsey Advisory Maintains Market Perform Rating on Dollar Tree (DLTR), Lifts PT

On May 27, Telsey Advisory Group analyst Joseph Feldman upped the price target on Dollar Tree, Inc. (NASDAQ:DLTR)’s stock to $95.00 from $82.00, while maintaining a “Market Perform” rating. The analyst’s statement exhibited the company’s strategic initiatives. The company expects capital expenditures to be between $1.2 billion – $1.3 billion, including ~400 new Dollar Tree store openings.

Telsey Advisory Maintains a Market Perform Rating on Dollar Tree (DLTR), Raises PT

A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.

The analyst lauded Dollar Tree, Inc. (NASDAQ:DLTR)’s expansion of multi-price point assortment, which is being integrated throughout categories and aisles in the 3.0 format.

Notably, the company ended FY 2024 with ~2,900 Dollar Tree 3.0 multi-price format stores, consisting of 2,600 conversions and 300 new stores. Dollar Tree, Inc. (NASDAQ:DLTR) continues to focus on enhancing value, convenience, and discovery for its customers, which can fuel productivity and profitability.

The analyst further highlighted the strength of Dollar Tree, Inc. (NASDAQ:DLTR)’s balance sheet, reflecting that it is well-placed to support potential share repurchases. The company has $1.3 billion of cash and cash equivalents at year-end, with no revolver or commercial paper balances. Its leverage stands below 2.5x. The sales from Dollar Tree are expected to be between $4.5 billion – $4.6 billion in Q1 2025.

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Disclosure: None.