Goldman Sachs Updates Numbers on Dollar Tree (DLTR), Says Positives Already Priced In

Goldman Sachs bumped its price target on Dollar Tree (NASDAQ: DLTR) from $80 to $81 following Q4 EPS of $1.60 that missed their estimate by $0.01, but beat the consensus of $1.59. The firm maintained their Neutral rating saying the market has already priced in building momentum.

The firm noted comps accelerated to 7.3% due in part to ideal winter weather. However, flow-through missed the firm's view due to greater incentive comp on the stronger results.

The firm trimmed FY12E/FY13E EPS by $0.01 to $5.13/$5.81 factoring in the 4Q miss.

Management highlighted building momentum into 2012 and provided FY12 guidance that calls for 15% EPS growth at the midpoint (ex-buybacks and the 53rd week). This is up from last year's 14% EPS growth target at the midpoint. Goldman notes "Despite the more aggressive guidance this year, consensus estimates are already ahead of the high end of management's range at $4.92 (including the 53rd week) whereas consensus sat at the midpoint last year." Based on this, they said a beat-and-raise scenario will be tougher.

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 $87.36 yesterday.

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