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Dollar Tree (DLTR) C-Suite Cleansing Can Drive $11 EPS in 2024 and $200+ Stock Price - Guggenheim

June 30, 2022 9:41 AM EDT
Get Alerts DLTR Hot Sheet
Price: $133.15 +0.49%

Rating Summary:
    22 Buy, 17 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Guggenheim analyst John Heinbockel reiterated a Buy rating and $185.00 price target on Dollar Tree (NASDAQ: DLTR), saying the C-suite cleansing can drive $11 EPS in 2024 and push the stock to $200+.

The analyst commented, "The transformation that began in March gained momentum earlier this week with the planned replacement of five more senior executives, leaving just CEO Mike Wytinski and DLTR Chief Merchant Rick McNeely as holdovers in the C-suite. This is among the most sweeping overhauls we have ever seen. That said, (1) these moves were foreshadowed by the BOD’s March 21 comment that Executive Chairman Rick Dreiling “will be incentivized to make the difficult decisions required to realize long-term value” (2) it is better to front load such changes in order to minimize disruption, and (3) they are being pursued from a position of P&L strength. To that end, 2022 full-year guidance, which, at the midpoint, implies a 5% comp increase and 29% EBITDA growth—despite $75 million in non-recurring costs—was re-affirmed. With the shares trading at 11X 2022 EBITDA, we remain Buy-rated with a $185 PT."

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 $156.24 yesterday.



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