KeyBanc Starts Dollar Tree (DLTR) at Overweight

October 12, 2016 4:16 PM EDT
Get Alerts DLTR Hot Sheet
Price: $79.51 +3.09%

Rating Summary:
    18 Buy, 15 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 10
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KeyBanc initiates coverage on Dollar Tree (NASDAQ: DLTR) with a Overweight rating and a price target of $90. Analyst Bradley B. Thomas sees potential for as much as $8 in EPS power long-term.

"DLTR is a compelling multi-faceted story, supported by a strong execution at legacy DLTR, as well as a synergy and turnaround story at legacy FDO, acquired in 2015. While DLTR faces near-term headwinds (food deflation, SNAP restrictions, WMT price investment), we believe the recent pullback in shares takes these risks into consideration, and we remain positive on the 2-3-year opportunity ahead as DLTR leverages its ownership of FDO," said Thomas.

The analyst added, "Dollar Tree, which acquired Family Dollar in 2015, boasts a strong operating track record, including positive same-store sales, for over a decade. Continued growth at core Dollar Tree, coupled with potential FDO synergy upside and a turnaround at FDO could drive $8 per share in earnings power in five years."

For an analyst ratings summary and ratings history on Dollar Tree click here. For more ratings news on Dollar Tree click here.

Shares of Dollar Tree closed at $77.24 yesterday.

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