From Financial Modeling Prep: 2025-04-07 15:02:00

Citi upgrades Dollar Tree (NASDAQ:DLTR) from Neutral to Buy, setting a new price target of $103, up from $76, due to benefits from rising tariffs. Shares surge 8% intra-day.

Dollar Tree, with half its products facing higher import duties, could actually benefit from tariffs as retail prices rise industry-wide. Citi sees potential for the company to raise prices to $1.50 or $1.75, boosting margins.

After Dollar Tree raised prices in 2022, it saw strong sales growth and earnings surge. Citi believes the retailer’s reputation for value and affordability will help it gain market share in an inflationary environment.

Citi predicts Dollar Tree’s pricing power and consumer trust will make it a top performer as retail adapts to a more expensive global supply chain. The company’s history of success with price increases supports this outlook.



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