Dollar Tree downgraded to Accumulate at Gordon Haskett after CEO change

Gordon Haskett analyst Chuck Grom downgraded Dollar Tree to Accumulate from Buy with an unchanged price target of $163 after the company announced that Mike Witynski, who has served as CEO since 2020, is stepping down and that executive Chairman Rick Dreiling will expand his role to assume the position of CEO, effective January 29. While the firm said Dreiling is "indeed a phenomenal change agent for the company," the path forward "could be a bit choppy in the near-term" and the CEO change boosts the odds of an "EPS reset," Gordon Haskett tells investors. Given factors on both the macro and micro fronts, the firm has lowered its FY23 EPS estimate to $7.10 from $7.95.