Truist Securities raised its price target on Dollar Tree (NASDAQ: DLTR) to $149 from $136 and reiterated a Buy rating, expressing confidence in the retailer’s longer-term earnings potential despite near-term controversy surrounding the stock.
The analyst described Dollar Tree as a highly debated name but said the firm remained positive heading into 2026. While bearish investors have pointed to a third-quarter traffic slowdown as evidence that the company’s multi-price-point strategy may be unsustainable, Truist said the slowdown was likely influenced by temporary factors and in-store disruptions. As store standards and inventory offerings improve, the firm expects traffic trends to recover.
Truist said Dollar Tree still has significant earnings growth potential over the next several years, supported by reasonable operational initiatives such as improved space allocation, enhanced store standards, and accelerated share repurchases. The firm noted that management has targeted earnings per share growth of 12% to 15% annually from 2026 through 2028, while Truist’s own model assumes EPS growth of 17% in 2026 and 11% in 2027.
If earnings growth approaches those levels, Truist said the stock’s valuation multiple could re-rate higher from its current level of roughly 17 times forward earnings.
