Dollar Tree is poised to benefit from a shaky economic environment, according to Loop Capital. The firm upgraded the discount retailer from hold to buy, lifting its 12‑month price target to $140 from $130, which implies about 23 % upside from Wednesday’s close. Analyst Anthony Chukumba noted in a client note that the current U.S. macroeconomic backdrop is highly favorable for Dollar Tree as the holiday season approaches, and that the ongoing multi‑price initiative should drive sustainable comparable‑store sales growth. He added that the bullish fundamental outlook and increased shareholder returns justify a higher valuation. Shares of Dollar Tree have fallen more than 13 % over the past month amid rising gasoline prices and weakening consumer purchasing power. The recent dip in consumer confidence should actually help the dollar store attract more shoppers and boost sales, Loop Capital said. Furthermore, Dollar Tree finally moved past its troubled $9 billion acquisition of Family Dollar in 2015, selling the division for $1 billion in 2025 and freeing capital for new initiatives. Chukumba observed that having put the Family Dollar deal behind it, Dollar Tree has accelerated EPS‑accretive share repurchases. Loop Capital’s stance contrasts with the broader Street consensus, where 15 of 29 analysts rate the stock a hold and 10 rate it a buy or strong buy, according to LSEG data.
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