Dollar Tree Stock Slides Nearly 3% As BNP Warns Of Slowing Sales Momentum

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BNP Paribas downgraded Dollar Tree to ‘Underperform’ from ‘Neutral’ and cut its price target to $87, down from $118, a 33% discount from the current price.

  • BNP Paribas sees a tepid sales environment for the company, as the impact of recent price hikes begins to fade.
  • The firm also sees tax code changes, adoption of weight-loss drugs, and the rise of agentic commerce as key challenges for Dollar Tree.
  • The company lifted its full-year 2025 earnings per share and sales projections last month.

Shares of Dollar Tree Inc. (DLTR) fell nearly 3% on Wednesday after BNP Paribas downgraded the stock, citing a softer sales environment amid macroeconomic headwinds.

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DLTR stock has shed around 8% over the past three sessions.

The firm downgraded Dollar Tree to ‘Underperform’ from ‘Neutral’ and cut its price target to $87, down from $118, according to The Fly. This represents a 33.3% drop from the current price of $130.5 per share.

The firm sees a “more tepid” sales environment for the company, as the impact of recent price hikes fades while macroeconomic headwinds intensify. Dollar Tree’s consumable units are falling, and the benefits from its multi-price point strategy are waning, BNP Paribas noted.

The firm also pointed out that Dollar Tree is facing challenges from tax code changes, the adoption of weight-loss drugs, and the rise of agentic commerce.

Outlook Remains Bullish

Last month, Dollar Tree raised its fiscal 2025 earnings outlook to a range of $5.60 to $5.80 per share, up from its prior forecast of $5.32 to $5.72. Analysts currently expect earnings of $5.73 per share, according to Fiscal.ai data.

The company also updated its sales guidance, projecting net sales of $19.35 billion to $19.45 billion, alongside comparable sales growth of 5% to 5.5%. Previously, the retailer had forecast net sales of $19.3 billion to $19.5 billion and comparable sales growth of 4% to 6%. Wall Street expects the company to post sales at the upper end of the range.

How Did Stocktwits Users React?

Despite the intraday slide, retail sentiment on Stocktwits turned ‘neutral’ from ‘bearish’ a day earlier.

DLTR shares have seen significant buying interest over the past year, gaining nearly 80%.

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