Wednesday night BTIG's Alan Rifkin initiated Dollar Tree DLTR at Buy with a $104 PT. Integration of Family Dollar will require significant effort by Dollar Tree and the payoff, according to Rifkin, will be a retailer with a complimentary business offering able to serve a wider consumer demographic. Square footage growth is forecasted to be 7-7.5 percent annually after the company gets through 2016, which Rifkin calls a year of relative slowdown in growth.
Synergies of the Dollar Tree/Family Dollar merger are expected to yield $350-$400 million over time.
Rifkin says the company continues to produce predictable top-line growth.
Shares of Dollar Tree closed Wednesday's regular session at $90.81, up $0.27 or 0.30 percent.
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