UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Dollar Tree Following 3Q Comp Miss

In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Dollar Tree DLTR, but lowered the price target from $62.00 to $60.00. In the report, Deutsche Bank noted, “Dollar Tree's 3Q comp miss versus MSD expectations has led to questions about (1) the strength of the consumer (challenged, especially on the low end in our view), (2) overall trends in the dollar store sector (choppy, but still taking market share from big box retailers), and (3) the appropriate multiple for DLTR (still deserving of a premium given long runway for door growth, differentiated model that does not compete directly with WMT, and strong earnings algorithm that still drives teens+ bottom line growth annual.” Dollar Tree closed on Thursday at $56.30.