** Shares in Dollar Tree DLTR.O up 1.2% at $68.39 premarket, bucking broader market declines

** Citigroup lifts rating on stock to "buy" from "neutral," raises PT to a Street high of $103 from $76

** Higher tariff regime gives DLTR cover to further expand price points to $1.50 to $1.75 from $1.25, Citigroup analysts write in a note

** Believe price increase seems inevitable, but consumers will be accepting of this magnitude of change as DLTR has been on a path to increasing prices for products under some collections - Citigroup

** The harder change from a consumer psychology perspective was breaking the $1.00 price point in 2022, due to an increase in freight costs - Brokerage

** Historically, dollar stores benefit in an environment where retail prices rise, as consumers look to stretch their budgets by shopping for cheaper essentials at outlets like Dollar Tree and Dollar General

** Dollar Tree's stock down nearly 10% so far this year, as of last close; stock fell 47% in 2024

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com))