Jefferies Downgrades Dollar Tree (DLTR) to Hold on Decelerating Comps

Jefferies downgraded Dollar Tree (NASDAQ: DLTR) from Buy to Hold with a price target of $41.00 (from $58.00) on decelerating sales.

"After a period of multiple expansion, the P/E is now contacting and may continue to," analyst Daniel Binder said. "Consumer uncertainty may be part of the problem, but increased competition, increased capacity in the industry, slowing benefits from cooler rollout and tough comparisons may also be contributing."

The firm cut FY12 EPS from $2.56 to $2.47 and FY13 from $2.93 to $2.76.

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 $43.28 yesterday.

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