Nomura Securities Maintains a 'Buy' on Dollar Tree (DLTR); Raising Numbers

Nomura Securities maintains a 'Buy' on Dollar Tree (NASDAQ: DLTR), PT increased from $63 to $72.

Nomura analyst, Aram Rubinson, says, "In the note we raise our estimates for DLTR as we believe its sales are back on trend. DLTR is growing space rapidly (7% annually and has a runway to do so for 8-plus years), has a high ROIC earning a strong 16.5%, and is a great merchant: no other listed retailer has been able to replicate the model of merchandising a broad assortment of products at a single (and low) price point. We raise our Q1 comp forecast to 6.0% to reflect trend (5%) and Easter (1%). We now model 2011 GM flat (was down 20bp) as better mark-ups offset diesel. Our 2011 and 2012 EPS estimates go to $3.88 (from $3.70) and $4.76 (from $4.55), respectively."

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 $58.07 yesterday.

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