© Reuters
By Sam Boughedda
Investing.com — Dollar Tree Inc ‘s (NASDAQ:) price target was cut to $160 from $180 by Telsey analyst Joseph Feldman on Tuesday.
Despite lowering the target, Feldman maintained an Outperform rating ahead of the company’s first-quarter results before the open on Thursday.
“We are maintaining our 1Q22 and 2022 EPS estimates, reflecting a positive core Dollar Tree comp helped by an increase in prices to $1.25, up from $1.00 previously,” wrote Feldman.
He added that the company will also be helped by an uptick in demand for food products and inflation, as well as gains from several company-specific initiatives.
“On profitability, we believe higher retail prices at core Dollar Tree should help offset high supply chain, fuel, and labor costs. Broadly, we believe that in a tight income/highly inflationary environment, consumers attempt to stretch their disposable income, which should result in a shift to dollar stores,” the analyst stated.
Dollar Tree shares are up just 0.2% Tuesday, although they are down more than 7% this year.
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