Dollar Tree May Hike Prices To Counter Trump Tariffs Without Losing Customers, Says Analyst: Retail Still Has Doubts

Dollar Tree, Inc (DLTR) was one of the top gainers on Monday, with its shares rising nearly 8%, even as the benchmark S&P 500 tracked lower in response to the U.S. import tariffs.

The rally came after an upgrade and positive commentary from Citi on the discount retailer.

Citi identified Dollar Tree as a potential unexpected winner in the face of broad-based tariffs, according to The Fly.

The brokerage upgraded the rating on the company's shares to 'Buy' from 'Neutral', and raised its price target to $103 from $76. The latest target signals more than 50% upside to the stock's previous close.

As tariffs are poised to impact nearly all U.S. trading partners, Dollar Tree may find room to raise prices without significantly discouraging its customer base, Citi analysts said in a note.

The company could raise prices above the $1.25 threshold, a move it first made in 2022. At the time, the change helped drive comparable store sales up 9% in fiscal year 2022 and 6% in fiscal year 2023, according to the analysts.

Dollar Tree now has cover to increase prices to $1.50 or $1.75, potentially enhancing profitability without materially impacting consumer behavior, the analysts predicted.

The retailer has historically performed well during economic slowdowns and is known for delivering strong value — a reputation that analysts believe will be advantageous in the current climate.

On Stocktwits, the retail sentiment remained 'neutral,' with the score dipping from a day earlier, amid low message volume.

Several users posted saying that they had bought or were planning to buy DLTR shares.

However, one skeptical watcher suggested a better entry point would be when the stock falls to $40.

 DLTR stock is now down nearly 3% year to date.

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