Shares of the discount store operator Dollar Tree (NASDAQ:DLTR) closed 14.2% lower on March 13 after the company reported lower-than-expected Q4 earnings. However, Wells Fargo analyst Edward Kelly sees the post-earnings selloff of DLTR as overdone. The analyst finds Dollar Tree’s valuation attractive and recommends buying DLTR shares.
Kelly’s maintained a Buy rating on DLTR stock. Meanwhile, his price target of $180 implies over 40% upside potential in DLTR stock from current price levels.
Notably, Dollar Tree stock is down about 10% year-to-date, underperforming the S&P 500’s (SPX) nearly 8.5% gain.
What is DLTR Stock Price Prediction?
Dollar Tree is in the midst of its transformation plan, which includes optimizing its store portfolio. However, product cost inflation, an unfavorable sales mix, and higher distribution and markdown costs continued to pose challenges.
Wall Street is cautiously optimistic about DLTR stock. It has eight Buy, four Hold, and one Sell recommendations for a Moderate Buy consensus rating. Analysts’ average price target on DLTR stock is $152.50, implying an upside potential of 18.75%.
