JPMorgan upgrades this discount retailer, sees 25% upside

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JPMorgan upgrades this discount retailer, sees 25% upside

Dollar Tree’s steady growth could underpin a breakout for the stock, according to JPMorgan. The firm upgraded stock in the discount retailer to overweight from neutral on Thursday and raised its price target to $111 per share from $72. JPMorgan’s new forecast implies about 25% upside from Wednesday’s close. DLTR YTD mountain Dollar Tree stock in 2025. Analyst Matthew Boss pointed to the company’s strong-first quarter results as emblematic of future strength, highlighting its same-store sales and traffic increases. “Multi-year, we see DLTR returning to a double-digit EPS ‘compounder’ with top- and bottom-line drivers in place at the core DT banner … and idiosyncratic bottom-line drivers through tariff mitigation strategies, [multi-price program] expansion, 1x cost recapture, and corporate expense leverage following the ***** of the FDO business (with capital allocation representing an incremental catalyst),” Boss said. Dollar Tree reported Wednesday earnings and revenue for the first quarter that beat analyst expectations. Same-store sales, a key metric for the the company, rose 5.4% — while analysts polled by FactSet expected a 4% increase. To be sure, the stock dropped 8% due to lackluster second-quarter guidance. Still, Boss noted that Dollar Tree did raise its full-year earnings

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. Most analysts are on the sidelines when it comes to Dollar Tree. LSEG data shows that 16 of 27 who cover the stock rate it a hold, with one rating it as underperform. Another 10 have buy or strong buy ratings. Shares rose more than 1% following the upgrade. Year to date, the stock is up 18%.

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