Dollar Tree's (DLTR) continued outlook volatility for Q3 is "very similar" to Q1, driven by timing differences and one-time items, but the focus should be on the company's long-term view, Truist Securities said in a Wednesday note.

The company posted Q2 results that were better than analysts had expected and raised its full-year sales and earnings guidance, Truist said. The company's sales momentum continues, and there is "solid growth" in customer traffic and spending, analysts noted.

Some of the expected earnings pressure from tariffs moved from Q2 to Q3, impacting Q3 EPS, the analysts said. However, they said Dollar Tree has more flexibility to deal with tariffs compared to other retailers, with the newer nature of its multi-price-point goods that are not constrained by planograms, or how products are displayed.

Truist kept the company's stock rating at buy and raised the price target to $129 from $127.

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