UBS analyst Michael Lasser maintained a Buy rating on Dollar Tree today and set a price target of $135.00.
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Michael Lasser has given his Buy rating due to a combination of factors that highlight Dollar Tree’s potential for growth and value creation. The company has identified significant opportunities for improvement across its stores, with a large portion of its locations seen as having potential for enhancement. This is particularly promising given Dollar Tree’s current small share of the $2 to $5 product price market, where each additional 1% market share could translate to $1 billion in sales.
Furthermore, Dollar Tree’s strategic plans suggest robust earnings growth, with projections of 8%-10% underlying growth and 12%-15% including discrete items. The potential for share repurchases and dividends could lead to a 20% annual gain, pushing EPS to between $8.50 and $9 by 2028. The company’s stock, trading at a relatively low price-to-earnings ratio, presents more upside potential than downside. The management’s credible plan and the company’s multi-price strategy add to the compelling investment case, making Dollar Tree a standout choice in a narrow field of investment opportunities.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $110.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is neutral on the stock.