(Updates with the analyst's commentary.)

Morgan Stanley cut its price target on Dollar Tree (DLTR) to $126 from $146 while maintaining its equalweight rating.

While performance improved through the holidays, fiscal Q4 comps "encompass the biggest comp traffic decline," Morgan Stanley said.

The estimated outlook for fiscal full-year 2026 also "implies a notable ticket comp deceleration," Morgan Stanley said in its note.

The brokerage said it considers the estimated fiscal 2026 flat gross margin guidance to be "realistic," although factors that may affect it "warrant monitoring."

Dollar Tree has an average rating of hold and mean price target of $125.86, according to analysts polled by FactSet.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 115.00, Change: +0.64, Percent Change: +0.56