Loop Capital upgraded Dollar Tree from hold to buy, raising its 12-month price target from $130 to $140, implying roughly 23% upside. The analyst believes the current U.S. macroeconomic backdrop is favorable for dollar stores, especially as the holiday shopping season approaches. Dollar Tree shares have declined more than 13% over the past month, weighed down by rising gasoline prices and fading consumer purchasing power. The analyst also noted that Dollar Tree’s sale of the Family Dollar division for $1 billion in 2025, after its disastrous $9 billion acquisition in 2015, now allows the company to freely reinvest capital into new initiatives and share buybacks.
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