Collins Stewart Starts Dollar Tree (DLTR) at Neutral; Non-core Concepts Provide Significant Unit Growth Potential, but Remain Small in Scale
Tweet
Share
E-mailGet Alerts DLTR Hot Sheet
Price: $129.39 -0.11%
Rating Summary:
17 Buy, 22 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 22 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Collins Stewart initiates coverage on Dollar Tree (NASDAQ: DLTR) with a Neutral. PT $82.00.
Collins analyst says, "DLTR has benefited from customers trading down against a challenging economic backdrop. Shoppers continue to be lured by the value proposition of the stores’ fun, largely discretionary product assortment and expanding consumables selection. The expansion of non-core concepts provides DLTR with a broader pricing platform in the U.S. and exposure to a new geographic market in Canada, but the ancillary brands represent a minor portion of the total store base. The company has increased its focus on enhancing stockholder returns through a more-aggressive share repurchase program. DLTR shares have appreciated over 45% YTD, significantly outperforming the S&P 500 index, which has declined 3% and the RLX index up 2%. The stock appears fully valued, in our view, trading at 17.5x our FY12 EPS estimate and 22x FY12E FCF."
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 $82.82 yesterday.
Collins analyst says, "DLTR has benefited from customers trading down against a challenging economic backdrop. Shoppers continue to be lured by the value proposition of the stores’ fun, largely discretionary product assortment and expanding consumables selection. The expansion of non-core concepts provides DLTR with a broader pricing platform in the U.S. and exposure to a new geographic market in Canada, but the ancillary brands represent a minor portion of the total store base. The company has increased its focus on enhancing stockholder returns through a more-aggressive share repurchase program. DLTR shares have appreciated over 45% YTD, significantly outperforming the S&P 500 index, which has declined 3% and the RLX index up 2%. The stock appears fully valued, in our view, trading at 17.5x our FY12 EPS estimate and 22x FY12E FCF."
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 $82.82 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Reddit to join S&P 500 index on Aug. 18, shares leap
- Lake Street Starts RF Industries Ltd. (RFIL) at Buy
- Raymond James Starts SpyGlass Pharma (SGP) at Outperform
Create E-mail Alert Related Categories
New CoverageRelated Entities
Collins Stewart, Standard & Poor's, Stock BuybackSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
