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Dollar Store Headwinds Not Uprooting Deutsche From Dollar Tree Buy Rating

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Dollar Store Headwinds Not Uprooting Deutsche From Dollar Tree Buy Rating
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Dollar Tree Is Now A Conviction List Buy At Goldman Sachs

Even with strong headwinds for the discount retail sector, Deutsche Bank Markets Research analyst Paul Trussell maintains a Buy rating and price target of $96 for Dollar Tree, Inc. (NASDAQ: DLTR) ahead of its Q3 earnings report on November 22.

The company faces competitive pricing challenges across the market, decreased SNAP benefits and overall deflation, but according to the analyst, these are considered in the current estimates.

Headwinds Not Deflating Optimism

While some on the Street are cautious with the headwinds, three key factors are keeping Trussell optimistic:

    1. Family Dollar Stores, Inc. (NYSE: FDO)'s slightly positive comparables.
    2. Family Dollar’s progress toward its 7.5 percent EBIT margin target.
    3. Dollar Tree’s comp stabilization and margin expansion.

At time of writing, shares of Dollar Tree were trading up 0.24 percent at $81.85.

Latest Ratings for DLTR

DateFirmActionFromTo
Nov 2017BuckinghamMaintainsBuy
Nov 2017UBSMaintainsBuy
Nov 2017Goldman SachsAssumesBuyBuy

View More Analyst Ratings for DLTR
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Markets ResearchAnalyst Color Earnings Long Ideas Previews Reiteration Analyst Ratings Trading Ideas Best of Benzinga

 

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