Jefferies & Company Initiates Coverage Of Dollar Tree (DLTR)

Jefferies & Company analyst Daniel Binder initiated coverage of Dollar Tree, Inc. (Nasdaq: DLTR) with a Hold rating and a price target of $64.

Binder wrote that Dollar Tree, Inc. is a great company but that its greatness is reflected in the share price.

Estimates for earnings in 2011 and 2012 are $4.28 and $4.86 per share, respectively, and are slightly above the consensus estimates of $4.17 and $4.66.

"Although we are upbeat on this company and management team, the risk/reward after a strong stock rally is less favorable, in our view, when we consider the difficult one and two-year comparisons, stepped up square footage growth in the dollar store sector and increased price investment coming from Wal-Mart."