Jefferies Raises Price Target on Dollar Tree (DLTR) Following 1Q Earnings Report
Jefferies reiterated a Hold rating on Dollar Tree (NASDAQ: DLTR), and raised the price target to $80.00 (from $75.00), following the company's 1Q earnings report. FY17 EPS was increased $0.15 at the high end and $0.23 off the low end. This matches the upside in Q1 on a GAAP basis. Management’s expectations for the remaining three quarters are unchanged.
Analyst Daniel Binder commented, "DLTR core EBIT margin improved after two qtrs. of declines and FDO margins were better than expected too. Comp sales were essentially in line so the $0.08 beat came as a result of better GM% in the FDO segment. Expense management was also strong in the DLTR core business considering the 2.2% comp. Q4 impact from the overtime rule suggest a ~$0.16 EPS detriment annualized, but we think mgmt. may be able to do more to mitigate the impact."
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Shares of Dollar Tree closed at $88.37 yesterday.