Telsey upgrades Dollar Tree on multi-price point product introduction

Telsey Advisory analyst Joseph Feldman upgraded Dollar Tree (DLTR) to Outperform from Market Perform with a price target of $130, up from $100. The firm is “encouraged” by the early results from the company’s introduction of multi-price point products, which include $3, $4, and $5 food products. Expanding the number of multi-price point items, rolling out the new store format, and eventually increasing the space allocated to multi-price point items in existing stores is a “solid playbook to fuel multi-year growth of sales and profits,” the analyst tells investors in a research note. Telsey sees these initiatives helping Dollar Tree gain market share and manage rising costs.