Raymond James and Bernstein Upgrade Dollar Tree after 2Q Results
Rating upgrades after 2Q17 results
Dollar Tree Stores’ (DLTR) strong fiscal 2Q17 results were well received by Wall Street. A couple of analysts upgraded the company’s rating, while others raised their price targets.
Raymond James moved Dollar Tree to a “strong buy” from “market perform.” Analyst Dan Weaver said Dollar Tree’s stock performance has been negatively impacted by the poor results at the company’s Family Dollar business. However, it seems that this segment’s sales and earnings have already bottomed out and comps (comparables) are likely to improve going forward. Weaver has a target price of $95 on DLTR.
Bernstein upgraded Dollar Tree to “market perform” from “outperform.” Analyst Brandon Fletcher said the “Dollar Tree banner is one of the most defensible retail concepts” and is also “largely immune” from the Amazon threat due to its business model.
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Target price revisions
Telsey Advisory Group reiterated its “outperform” rating for the company and raised the price target to $91 from $88. Jefferies also maintained its “hold” rating and raised the price target to $85.
Deutsche Bank raised the target price to $98 from $95, while BMO raised it to $90 from $88.
Investors looking for exposure to Dollar Tree through ETFs can consider the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests 0.74% of its total holdings in the company.
In the next part, we’ll look at the broad Wall Street view of Dollar Tree.