• Wells Fargo maintains an "Overweight" rating for Dollar Tree (NASDAQ:DLTR) and raises its price target from $115 to $125.
• Dollar Tree reports strong third-quarter results for fiscal year 2025, with a 4.2% increase in comparable store sales and a 12% year-over-year rise in adjusted earnings per share.
• The company's gross margin improved by 40 basis points, indicating effective cost and pricing management.

On December 3, 2025, Wells Fargo maintained its "Overweight" rating for Dollar Tree (NASDAQ:DLTR), a prominent discount retail chain in the United States. At the time, the stock was priced at $112.92. Wells Fargo also raised its price target for Dollar Tree from $115 to $125, as highlighted by TheFly. This reflects confidence in the company's future performance. Dollar Tree reported strong third-quarter results for fiscal year 2025, with earnings and sales surpassing expectations. The company's comparable store sales increased by 4.2%, driven by a higher average ticket, even though store traffic declined. This indicates that customers are spending more per visit, which is a positive sign for the retailer.

The company's gross margin improved by 40 basis points, thanks to stronger pricing strategies, reduced freight costs, and a healthier sales mix. This improvement in gross margin suggests that Dollar Tree is effectively managing its costs and pricing, which is crucial for maintaining profitability in the competitive retail sector. Dollar Tree's adjusted earnings per share from continuing operations rose by 12% year over year to $1.21, exceeding the Zacks Consensus Estimate of $1.09. Net sales climbed 9.4% from the previous year, reaching $4.75 billion, slightly above the consensus estimate of $4.74 billion.

This strong performance is attributed to the company's strategic initiatives, which have led to firmer guidance for fiscal year 2025. The stock is currently priced at $112.92, reflecting an increase of approximately 3.61% or $3.93. Today, the stock has fluctuated between a low of $107.44 and a high of $114.38. Over the past year, the stock has reached a high of $118.06 and a low of $61.80. Dollar Tree's market capitalization stands at approximately $24.02 billion, with a trading volume of 5,834,096 shares on the NASDAQ exchange.