Dollar Tree price target raised to $149 from $135 at Truist

Truist raised the firm’s price target on Dollar Tree to $149 from $135 and keeps a Buy rating on the shares as part of a broader research note previewing 2024 in Hardlines/Broadlines retail. The group could be poised for a solid outperformance for FY24, following slight and rare underperformance in FY23 as consumers continue to spend despite investor concerns over inflation and higher rates, and if the Fed is at or near the end of tightening, investors will lean into consumer-centric growth stocks, the analyst tells investors in a research note. The firm adds that sales at Dollar Tree remain strong as its newer pricing model has increased merchandising flexibility and expanded their total addressable market while the company also broadened their assortment. Trends at Family Dollar have softened a bit, but this is due to macro factors, and the unit’s geo-stacked comps are still stronger than at any time since the GFC, Truist states.