15 analysts have shared their evaluations of Dollar Tree (NASDAQ:DLTR) during the recent three months, expressing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 9 | 2 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 3 | 8 | 1 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $159.33, a high estimate of $180.00, and a low estimate of $144.00. Witnessing a positive shift, the current average has risen by 0.43% from the previous average price target of $158.64.
Analyzing Analyst Ratings: A Detailed Breakdown
A clear picture of Dollar Tree's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Greg Melich | Evercore ISI Group | Raises | In-Line | $145.00 | $144.00 |
| Anthony Chukumba | Loop Capital | Lowers | Buy | $170.00 | $195.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $144.00 | $157.00 |
| Kelly Bania | BMO Capital | Lowers | Outperform | $160.00 | $170.00 |
| Peter Keith | Piper Sandler | Lowers | Overweight | $168.00 | $171.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Buy | $147.00 | $149.00 |
| Matthew Boss | JP Morgan | Lowers | Overweight | $144.00 | $165.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $160.00 | - |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $160.00 | - |
| Matthew Boss | JP Morgan | Raises | Overweight | $165.00 | $157.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $160.00 | - |
| John Heinbockel | Guggenheim | Raises | Buy | $170.00 | $155.00 |
| Edward Kelly | Wells Fargo | Raises | Overweight | $180.00 | $160.00 |
| Chuck Grom | Gordon Haskett | Announces | Buy | $160.00 | - |
| Matthew Boss | JP Morgan | Raises | Overweight | $157.00 | $122.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Dollar Tree. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Dollar Tree compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Dollar Tree's stock. This comparison reveals trends in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Dollar Tree's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Dollar Tree analyst ratings.
All You Need to Know About Dollar Tree
Dollar Tree operates discount stores across the United States and Canada, with over 8,200 shops under its namesake banner and 8,350 under Family Dollar. About 45% of Dollar Tree's sales in fiscal 2022 were composed of consumables (including food, health and beauty, and cleaning products), nearly 50% from variety items (including toys and homewares), and over 5% from seasonal items. The Dollar Tree banner sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. Conversely, Family Dollar primarily sells consumable merchandise (nearly 80% of the banner's sales) at prices below $10. About two-thirds of Family Dollar's stores are located in urban and suburban markets, with the remaining one-third located in rural areas.
Financial Milestones: Dollar Tree's Journey
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Dollar Tree showcased positive performance, achieving a revenue growth rate of 11.91% as of 31 January, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Dollar Tree's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -19.79%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Dollar Tree's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -20.96%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -7.43%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Dollar Tree's debt-to-equity ratio is below the industry average. With a ratio of 1.42, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Basics of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
