Barclays reaffirmed its Overweight rating and $149 price target on Dollar Tree (NASDAQ: DLTR), citing a generally favorable view of the company’s fourth-quarter performance.
The firm noted that strength in both sales and margins supported the view that Dollar Tree’s merchandising transformation is progressing effectively. However, some upside was tempered by temporary factors, including weather-related store closures and incremental investments.
Barclays made a slight upward revision to its earnings outlook, raising its 2026 EPS estimate to $6.80 from $6.78, incorporating the modest fourth-quarter earnings beat relative to the company’s guidance range of $6.50 to $6.90.
The updated estimate includes a $0.09 benefit from share repurchases, bringing the firm’s projection closer to the midpoint of guidance when excluding that impact.
The firm maintained its comparable sales growth forecast at 3.6% but indicated potential upside to approximately 4%. Gross margin was expected to remain flat, while most of the anticipated 40 basis point operating margin improvement to 9% was attributed to corporate SG&A efficiencies.
