Dollar Tree (DLTR) PT Raised to $110 at Guggenheim

Guggenheim analyst John Heinbockel raised the price target on Dollar Tree (NASDAQ: DLTR) to $110.00 (from $85.00) while maintaining a Buy rating.

The analyst commented, "We remain constructive on DLTR, largely on a return to algorithmic top- and bottom-line growth at the DLTR brand over the next 6-12 months. DLTR’s “defensive discretionary” merchandise mix—non-consumables for $1—and broad demographic appeal should enable the brand to benefit from trading down as the recession lengthens, providing relatively easy, low-risk compares beginning in 4Q 2020. There is also increased optionality with respect to an FDO turnaround but, at 30% of EBITDA, the impact is limited. We raise our 2020/2021 estimates and PT to $110 from $85, and stay BUY rated"

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