Wall Street Is Warming Up to Dollar Tree (DLTR) Stock Again. Here Is Why

TLDR

• Jefferies upgraded Dollar Tree from Underperform to Hold, citing improving traffic trends
• Q2 foot traffic hit +1.4%, up from -0.8% in Q1, with July surging to +4.5%
• Jefferies raised its Q2 comp estimate to 3.4% and EPS estimate to $1.15
• Wells Fargo raised its price target to $155 from $145, keeping an Overweight rating
• DLTR stock rose about 1% in premarket trading following the upgrade

Dollar Tree stock climbed around 1% in premarket trading on Tuesday after Jefferies upgraded the discount retailer from Underperform to Hold.

Dollar Tree, Inc., DLTR

The upgrade came as analysts led by Corey Tarlowe pointed to improving foot traffic data and said the stock now carries limited near-term downside risk.

Jefferies described Dollar Tree’s business as having returned to being “simple and straightforward.” The previous downgrade had flagged concerns around the multi-price rollout, competitive pressure, and ticket-driven growth squeezing traffic and margins.

DLTR was trading around $130.48 before the open, up $0.94 on the day.

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