Piper Sandler analyst Peter Keith views Dollar Tree’s Q3 earnings print as neutral to slightly positive. To the positive, fundamentals at core-Dollar Tree are strengthening, and with 2023 EPS guidance maintained/tightened, the company broke its 5-quarter streak of guiding margin lower. Additionally, management remains confident in its $10 in EPS goal by 2026. To the negative, FDO comp softened in Q3 from economic pressures and was guided to remain weak in Q4, notes Piper. Importantly, management effectively blessed the 2024 EPS bridge to reach EPS of $7 next year with no organic growth. All in, grocery deflation is a modest wildcard for 2024, but the firm continues to see a highly compelling multi-year turnaround unfolding that it expects to drive sustainable, multi-year EPS growth of 20%-plus. Piper has an Overweight rating on the shares with a price target of $160.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See Insiders’ Hot Stocks on TipRanks >>
Read More on DLTR:
- Tomorrow’s Earnings Report Has Big Lots (NYSE:BIG) Investors Fired Up
- Unusually active option classes on open November 29th
- Dollar Tree (NASDAQ: DLTR) Slips as Q3 Results Disappoint
- Options Volatility and Implied Earnings Moves Today, November 29, 2023
- Dollar Tree sees Q4 EPS $2.58-$2.78, consensus $2.57