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Dollar Tree (NASDAQ:DLTR) Maintains "Overweight" Rating by Wells Fargo with a Raised Price Target
Financial Modeling Prep· 2025-12-04 06:06
Core Viewpoint - Wells Fargo maintains an "Overweight" rating for Dollar Tree and raises its price target from $115 to $125, reflecting confidence in the company's future performance [1][4] Financial Performance - Dollar Tree reported strong third-quarter results for fiscal year 2025, with earnings and sales surpassing expectations [1] - Comparable store sales increased by 4.2%, driven by a higher average ticket despite a decline in store traffic, indicating customers are spending more per visit [1][2] - Adjusted earnings per share from continuing operations rose by 12% year over year to $1.21, exceeding the Zacks Consensus Estimate of $1.09 [2] - Net sales climbed 9.4% from the previous year, reaching $4.75 billion, slightly above the consensus estimate of $4.74 billion [2] Margin and Cost Management - The company's gross margin improved by 40 basis points, attributed to stronger pricing strategies, reduced freight costs, and a healthier sales mix, indicating effective cost and pricing management [2][4] Stock Performance - The stock is currently priced at $112.92, reflecting an increase of approximately 3.61% or $3.93 [3] - Over the past year, the stock has fluctuated between a high of $118.06 and a low of $61.80, with a current market capitalization of approximately $24.02 billion [3]