Deutsche Bank Starts Dollar Tree (DLTR) at Buy; Solid Traffic Trends Only Few Retailers Can Claim

Deutsche Bank initiates coverage on Dollar Tree (NASDAQ: DLTR) with a Buy. PT $81.00.

Deutsche analyst says, "DLTR enjoys some of the most prolific traffic trends in retail – consistent with Costco (Nasdaq: COST)(Buy), which is impressive given the stress its targeted customer continues to endure. To quantify, traffic has averaged 580 bps over the past 10 quarters—supporting 65% of the comp. While strong brand awareness and an attractive value proposition are key ingredients, DLTR has augmented its tender offering along with food stamp acceptance. Looking ahead, given these traffic rates, we have greater confidence in the company’s ability to drive comps in 2H11 and 2012."

For more ratings news on Dollar Tree click here and for the rating history of Dollar Tree click here.

Shares of Dollar Tree closed at $74.76 yesterday.

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