In a report released today, Paul Lejuez from Citi maintained a Buy rating on Dollar Tree (DLTR – Research Report), with a price target of $163.00.
Paul Lejuez has given his Buy rating due to a combination of factors including the company’s solid performance and strategic initiatives. Dollar Tree’s fourth-quarter adjusted earnings per share (EPS) slightly exceeded the analyst’s expectations, and the gross margin (GM) improvements were particularly notable, surpassing estimates. The company’s decision to close underperforming Family Dollar stores is anticipated to contribute positively to fiscal 2024 EPS, indicating a proactive approach to optimizing its store portfolio.
Furthermore, the guidance for fiscal 2024 shows a healthy increase in comparable store sales, particularly for the Dollar Tree brand, which is expected to grow in the mid-single digits. While the first-quarter guidance might have been softer than expected, the overall outlook for the year demonstrates confidence in the company’s growth trajectory. The expected share price return of 8.9% suggests that there is still upside potential for the stock, reinforcing the Buy rating.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $180.00 price target.
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Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DLTR in relation to earlier this year.
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Dollar Tree (DLTR) Company Description:
Dollar Tree, Inc. is a discount variety retail store operator that sells items for $1 or less. The company operates over 15,000 stores in the United States and Canada under the Dollar Tree and Family Dollar brands. It offers a wide range of quality everyday general merchandise in several categories, including candy and food, housewares, seasonal goods, health and beauty care, stationery, books, personal accessories, toys, gifts, party goods, and other consumer items.
Read More on DLTR:
- DLTR Earnings: Dollar Tree Plunges as Q4 Earnings Fall Short of Estimates
- Options Volatility and Implied Earnings Moves Today, March 13, 2024
- Dollar Tree’s Transparent Financial Performance Overview
- Dollar Tree price target raised to $165 from $157 at JPMorgan
- Options Volatility and Implied Earnings Moves This Week, March 11 – March 15, 2024
