Dollar Tree Inc. (NASDAQ:DLTR) reached a new 52-week peak of $109.74, reflecting the company’s strong momentum in the retail sector. With a market value of $22.85 billion, the stock has surged 50% over the past six months and gained over 44% year-to-date, signaling solid investor confidence.
This upward trend comes as Dollar Tree continues to successfully implement strategies focused on delivering value to price-conscious shoppers. Trading at a P/E ratio of 21.35, the stock’s rally highlights optimism around the company’s ability to thrive amid intense retail competition.
In recent developments, Dollar Tree finalized the $1 billion sale of its Family Dollar division to Brigade Capital and Macellum Capital, generating roughly $800 million in net proceeds. This deal is expected to provide a tax shield of approximately $375 million and add $85 to $90 million to income in the latter half of 2025. The divestiture allows Dollar Tree to concentrate on its core business while continuing to offer shared services to Family Dollar, further boosting earnings.
Following the sale, UBS raised its price target on Dollar Tree to $127, maintaining a Buy rating and highlighting benefits from the company’s multi-price approach. Meanwhile, the Board refreshed its share repurchase authorization to $2.5 billion, signaling a commitment to returning cash to shareholders.
Bernstein SocGen Group also increased its price target to $86, citing strong comparable sales but cautioning about potential earnings volatility tied to tariffs.
Dollar Tree’s latest quarterly results beat expectations, with a 5.4% rise in comparable sales and adjusted earnings per share of $1.26. The company updated its 2025 outlook, forecasting net sales between $18.5 billion and $19.1 billion, and raising adjusted EPS guidance to $5.15–$5.65.
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