Dollar Tree's (DLTR) upcoming fiscal Q2 results should indicate its momentum and growth runway, with improving traffic potentially leading to a positive inflection in fiscal Q3, UBS Securities said in a Friday note.
Better execution, easier comparisons and a more compelling customer value proposition, coupled with other merchandising, marketing and operating initiatives, should back traffic growth throughout the year, the investment firm said.
UBS expects Dollar Tree to exceed the high end of its fiscal Q2 outlook of $1 to $1.15 in earnings per share, and meed to top the Street consensus of a 3.5% comparable sales growth. The company could also raise its fiscal 2026 guidance, the brokerage added.
Dollar Tree is set to release its fiscal Q2 results on Aug. 27.
UBS has a buy rating and $145 price target on Dollar Tree.
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