Dollar Tree's Strategic Plan To Propel Annual EPS Growth: Analyst Predicts Bright Future

Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on the shares of Dollar Tree Inc DLTR with a price target of $162.

The analyst said that Dollar Tree's investor conference provided greater clarity on the path to getting to the next level, driving sales and profit growth, and growing market share.

The management team talked about fortifying the base and investing in growth, with results becoming visible in stronger traffic higher sales per store, and improvement in operating efficiency, noted the analyst.

Dollar Tree plans to gain market share by opening new stores, adding coolers, raising the shelf height, and enhancing merchandising, including $3, $4, and $5 frozen items and higher priced discretionary products through the multi-price effort.

Also, the analyst believes the company plans to benefit from new stores and remodels H2.5 layout in suburban markets, larger stores in rural markets, and smaller stores in urban markets.

The analyst opined that the company is transforming its supply chain, modernizing its IT infrastructure, and streamlining operating processes to help fuel sales and profit growth.

So, according to the analyst, the strategic plan should translate to an annual EPS growth of mid-to-high teens, reaching 2026 EPS of $10+.

Price Action: DLTR shares are trading higher by 0.67% at $143.73 on the last check Thursday.