UPDATE: Barclays Maintains its Equal weight Rating and Price Target for Dollar Tree

Barclays released a report Friday maintaining its Equal Weight rating and $48 price target of Dollar Tree

In the report Barclays writes "Over the past five or more years, DLTR has learned to use POS and other data to run its business more efficiently and productively. This was evident in the meaningful moderation in expense growth visible in 2Q12, which was primarily a result of better management of labor hours and an improved flow of inventory. The company also seems to be taking a more fine-tuned approach to merchandising. On the latest earnings call management specifically mentioned upgrading the front-end of the store to drive more impulse sales, adding sku's to the stationery and HBA categories, and turning Graduation into a "holiday" with its own assortment. Since DLTR came late to the data collection game, we believe it continues to have many more opportunities to leverage its data. In addition, the company still has room to expand the number of highly-profitable Dollar Tree stores, accelerate growth of the Deal$ concept to serve consumers in densely populated areas, educate shoppers about the convenience of buying bulk items through dollartree.com, and get the Canadian stores to profitability levels approaching the US. Strong growth in operating income combined with more stock buybacks should allow the company to drive EPS growth by 20% or more for at least the next several years. Although the P/E is below that growth rate, the market still seems unwilling to take the multiple above 20.0x for long. Therefore, we see DLTR as having limited upside and are maintaining our Equal Weight rating and $48 price target." Dollar Tree traded around $49 Friday