BMO Sees 7% Upside In Dollar Tree

BMO has raised the price target of Dollar Tree, Inc. (NASDAQ: DLTR) to $95 from $84 and sees a 7 percent upside in shares, after the discount retailer reported better-than-expected first quarter and raised 2016 EPS outlook on favorable cost management."While we have ongoing concerns about higher inventory shrinkage, distribution, and inventory accuracy costs at the DLTR segment, lower freight costs are providing some near-term relief to GM," analyst Wayne Hood wrote in a note.Hood, who maintained his Market Perform rating on the stock, now sees 2016 EPS at $3.65 and 2017 EPS at $4.52.Excluding items, Dollar Tree earned $0.89 a share, up 25.4 percent from $0.71 a share in the year-ago quarter. Street analysts' estimated the company to deliver earnings of $0.81 a share.For the second quarter, the company sees earnings of $0.66 - $0.72 a share on revenue of $5.03 - $5.12 billion. Analysts had predicted earnings of $0.75 a share on revenue of $5.09 billion.Going forward, the company lifted its full-year earnings guidance to $3.58 - $3.80 a share from $3.35 - $3.65 projected earlier. The company also tightened its revenue forecast to $20.79 billion - $21.08 billion from $20.76-$21.11 billion. Street was expecting Dollar Tree to earn $3.67 a share on revenue of $21.05 billion.Read more: http://www.benzinga.com/news/earnings/16/05/8034888/dollar-tree-q1-profit-tops-expectations-boosts-full-year-forecast#ixzz4AFxKd46NAt the time of writing, shares of Dollar Tree rose 1.70 percent to $90.45 after it touched a new 52-week high of $90.51.