Dollar Tree's Q3 Suggests Market Share Gains At Both Banner Stores: 4 Analysts Take A Look

Dollar Tree Inc DLTR shares were rising on Thursday, after tanking in the previous session on the company’s quarterly results.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Truist Securities On Dollar Tree

Analyst Scot Ciccarelli maintained a Buy rating while raising the price target from $129 to $135.

Dollar Tree’s quarterly sales were in-line with the Street estimates and “solid on a 4-yr stack,” Ciccarelli wrote in a note. “That said, FDO’s sales were below our/Street ests. and are expected to remain soft in 4Q, largely due to macro pressures on lower-income consumers/weak discretionary trends,” he added.

“The slowdown is disappointing, but the continued mkt share gains are encouraging and we believe the investments in pricing, stores, etc. will ultimately result in higher levels of sales productivity and profits over the LT,” the analyst stated.

Goldman Sachs On Dollar Tree

Analyst Kate McShane reiterated a Buy rating while lifting the price target from $137 to $144.

Dollar Tree reported consolidated same-store sales growth of 3.9%, “with market share gains at both banners,” McShane said.

Dollar Tree’s same-store sales grew by 5.4%, “driven by traffic, partially offset by a decline in ticket, largely supported by gains in higher income customers,” the analyst wrote. Family Dollar’s same-store sales increased 2.0%, driven by traffic and ticket, she added.

Check out other analyst stock ratings.

BMO Capital Markets On Dollar Tree

Analyst Kelly Bania reaffirmed an Outperform rating and price target of $170.

While Dollar Tree reported third-quarter earnings in-line with its guidance, management reiterated its “4Q EPS plan, suggesting consolidated EPS remains resilient despite top-line pressures at Family Dollar [FD], which are expected to continue into 4Q,” Bania wrote in a note.

“Management also announced a FD store portfolio review that was not previously contemplated in June's investor day plan, but might be net positive in our view,” she added.

Oppenheimer On Dollar Tree

Analyst Rupesh Parikh maintained a Perform rating on the stock.

Dollar Tree announced a better-than-feared guidance for the fourth quarter, Parikh said. “In our callback, management noted the $7.00 EPS commentary for FY24 on the call is not guidance and is just a starting line,” he added.

“In addition, the company continues to believe in its $10+ EPS target in FY26 vs. continued skepticism in our investor conversations,” the analyst further stated.

DLTR Price Action: Shares of Dollar Tree had risen by 1.98% to $123.50 at the time of publication Thursday.

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