Dollar Tree up after Citigroup raises to 'buy' from 'neutral', lifts to Street high PT

Shares in Dollar Tree DLTR.O up 1.2% at $68.39 premarket, bucking broader market declines

Citigroup lifts rating on stock to "buy" from "neutral," raises PT to a Street high of $103 from $76

Higher tariff regime gives DLTR cover to further expand price points to $1.50 to $1.75 from $1.25, Citigroup analysts write in a note

Believe price increase seems inevitable, but consumers will be accepting of this magnitude of change as DLTR has been on a path to increasing prices for products under some collections - Citigroup

The harder change from a consumer psychology perspective was breaking the $1.00 price point in 2022, due to an increase in freight costs - Brokerage

Historically, dollar stores benefit in an environment where retail prices rise, as consumers look to stretch their budgets by shopping for cheaper essentials at outlets like Dollar Tree and Dollar General

Dollar Tree's stock down nearly 10% so far this year, as of last close; stock fell 47% in 2024