Dollar Tree (DLTR) Shares Rally 0.99% on UBS Price Target Hike

Dollar Tree (DLTR) shares rose to their highest level since August 2024 today, with an intraday gain of 0.99%.

Over the past five years, the strategy of buying DLTR shares after they reached a high and holding for one week resulted in a significant loss. The strategy yielded a return of -44.55%, with a benchmark return of 49.45% and an excess return of -93.99%. The Sharpe ratio was -0.60, indicating poor risk-adjusted returns, and the maximum drawdown was -63.21%, highlighting the strategy's high risk and substantial potential losses.

On May 29, 2025, UBS analyst Michael Lasser raised the price target for Dollar Tree from $95.00 to $108.00, maintaining a "Buy" rating. This adjustment reflects a positive outlook on the company's market performance and suggests potential gains for investors. The analyst's confidence in Dollar Tree's future prospects has likely contributed to the recent upward trend in the stock price.

Looking ahead, Dollar Tree's Q1 earnings are anticipated to face challenges due to weak demand, inflation, and higher costs. However, the company has been making strides in store optimization and supply-chain improvements, which are expected to mitigate some of these challenges and drive future growth. Investors are closely monitoring these developments as they assess the company's financial trajectory and potential for long-term success.