Analyst Robert Ohmes of Bank of America Securities maintained a Sell rating on Dollar Tree (DLTR – Research Report), with a price target of $75.00.
Robert Ohmes has given his Sell rating due to a combination of factors impacting Dollar Tree’s financial outlook. One significant concern is the potential downside risk to the company’s earnings per share (EPS) forecast for the fourth quarter, which is slightly below the market consensus and within the lower end of the company’s guidance range. This cautious outlook is compounded by a slower-than-expected sales growth in the Dollar Tree banner, which could further pressure the company’s performance.
Additionally, while some one-time costs are expected to roll off in 2025, ongoing expense risks remain a concern. The company’s gross margin could be adversely affected by tariffs, especially given the high percentage of direct imports in the Dollar Tree banner. Although the multi-price strategy offers some flexibility, it also introduces risks related to store complexity and competitive responses. These factors, combined with uncertainties surrounding the strategic review of the Family Dollar banner, contribute to the maintained Underperform rating with a price objective of $75.
According to TipRanks, Ohmes is a 5-star analyst with an average return of 9.5% and a 58.39% success rate. Ohmes covers the Consumer Cyclical sector, focusing on stocks such as O’Reilly Auto, AutoZone, and Best Buy Co.
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