Morgan Stanley Lowers Dollar Tree (NASDAQ:DLTR) Price Target to $126.00

Dollar Tree (NASDAQ:DLTR) had its target price lowered by equities researchers at Morgan Stanley from $146.00 to $126.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s target price indicates a potential upside of 10.18% from the company’s previous close.

Several other research analysts have also weighed in on DLTR. Jefferies Financial Group reiterated an “underperform” rating and set a $75.00 target price on shares of Dollar Tree in a report on Wednesday, December 3rd. Piper Sandler restated a “neutral” rating and issued a $114.00 price target (up from $108.00) on shares of Dollar Tree in a report on Thursday, December 4th. UBS Group raised their price target on Dollar Tree from $135.00 to $138.00 and gave the stock a “buy” rating in a research report on Thursday, December 4th. Truist Financial set a $142.00 price objective on Dollar Tree in a report on Monday. Finally, Barclays reiterated an “overweight” rating on shares of Dollar Tree in a research report on Monday. Eight equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and seven have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $123.00.

Dollar Tree Stock Up 6.4%

Shares of NASDAQ:DLTR opened at $114.36 on Tuesday. The company has a 50 day moving average price of $125.64 and a two-hundred day moving average price of $112.82. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.22 and a current ratio of 0.96. The company has a market capitalization of $22.74 billion, a PE ratio of -8.50, a PEG ratio of 1.34 and a beta of 0.73. Dollar Tree has a 52 week low of $61.87 and a 52 week high of $142.40.

Dollar Tree (NASDAQ:DLTR) last announced its quarterly earnings results on Monday, March 16th. The company reported $2.56 earnings per share for the quarter, topping analysts’ consensus estimates of $2.53 by $0.03. Dollar Tree had a negative net margin of 15.40% and a positive return on equity of 30.23%. The company had revenue of $5.45 billion for the quarter, compared to analysts’ expectations of $5.46 billion. During the same period last year, the firm posted $2.11 earnings per share. The business’s quarterly revenue was up 9.0% compared to the same quarter last year. Analysts forecast that Dollar Tree will post 5.39 earnings per share for the current year.

Institutional Investors Weigh In On Dollar Tree

Several institutional investors and hedge funds have recently added to or reduced their stakes in DLTR. Corient Private Wealth LLC boosted its stake in shares of Dollar Tree by 23.4% during the 4th quarter. Corient Private Wealth LLC now owns 24,608 shares of the company’s stock worth $3,027,000 after buying an additional 4,666 shares during the last quarter. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Dollar Tree in the fourth quarter valued at about $45,000. Bayban bought a new stake in Dollar Tree during the fourth quarter worth about $49,000. OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Dollar Tree during the fourth quarter worth about $1,230,000. Finally, Reflection Asset Management acquired a new position in Dollar Tree during the fourth quarter valued at approximately $25,000. 97.40% of the stock is owned by institutional investors.

Key Headlines Impacting Dollar Tree

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Q4 results beat expectations: adjusted EPS of $2.56 beat consensus and revenue rose 9% year-over-year with comps up ~5%, signaling improving underlying sales and margin progress. Read More.
• Positive Sentiment: Customer gains: management said Dollar Tree added ~6.5 million net new households in Q4 as higher-income shoppers trade down — a structural customer mix benefit for value retailers. Read More.
• Positive Sentiment: Share repurchases and balance-sheet strength: aggressive buybacks and low net leverage support cash returns and longer-term value thesis. Read More.
• Neutral Sentiment: Morgan Stanley maintains a Hold with a $126 target, reflecting balanced views on valuation versus execution/traffic risk. Read More.
• Neutral Sentiment: Some brokers note improving traffic and a reasonable 2026 outlook, which helps explain investor interest despite cautious guidance. Read More.
• Negative Sentiment: Management issued cautious FY2026 sales guidance (softer top-line outlook), which disappointed traders and capped enthusiasm despite the beat. Read More.
• Negative Sentiment: Bank of America reiterated a Sell, citing structural headwinds and traffic declines — a prominent bearish voice that can pressure sentiment. Read More.
• Negative Sentiment: Broader concerns: the stock has underperformed peers, institutional trimming and ~6% short interest add near-term downside/cap risks. Read More.

About Dollar Tree

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company’s stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree’s merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.