Jefferies Upgrades Dollar Tree as Foot Traffic Hits Nine-Quarter High

Key Facts

1Jefferies upgraded Dollar Tree from Underperform to Hold, raising its price target to $135.00 from $85.00.

2Dollar Tree recorded its strongest traffic growth in nine quarters during the second fiscal quarter of 2025.

3The company recently authorized a $2.5 billion share repurchase program.

Amid signs of stabilizing fundamentals in the discount retail sector, Jefferies has upgraded Dollar Tree's stock rating from Underperform to Hold. This shift follows the company's performance in the second fiscal quarter of 2025, where it recorded its strongest growth in shopper traffic in nine quarters. According to reports, this resurgence in foot traffic marks a significant turning point for the retailer's business stability.

The company's outlook is further supported by a recently authorized $2.5 billion share repurchase program, reflecting a commitment to returning capital to shareholders. In light of these developments, Jefferies aggressively raised its price target for the stock to $135.00, up from the previous $85.00, citing a more simplified and stable business trajectory moving forward.

At the close on August 18, 2026, DLTR was priced at $130.48, having reached a day high of $133.45 during the session. Investors will be monitoring whether the retailer can maintain this traffic momentum to reach the new $135.00 target, especially as the stock continues to trade near its recent support levels established per market data.

Sources:

Investing.com Canada