In a report released today, Rupesh Parikh from Oppenheimer maintained a Buy rating on Dollar Tree (DLTR), with a price target of $92. The company’s shares closed yesterday at $83.32, close to its 52-week low of $78.78.
Parikh commented:
“We overall view Dollar Tree’s Q3:18 results as mixed. On the positive side, Q3 bottom- line expectations met Street forecasts even with a number of cost headwinds, and the Dollar Tree banner continues to perform well. On the negative side, Family Dollar (FDO) comps remain challenged, declining 0.4%, and gross margin decreased 220 bps. Management also guided Q4 below the Street. We continue to view DLTR shares as an attractive longer-term value play, and commentary in the press release suggests more aggressive actions to improve operating performance going forward. We await specifics, but anticipate a still difficult shorter-term outlook for the shares, largely driven by the potential for FDO challenges to persist. We continue to rank DG ahead of DLTR.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.3% and a 64.7% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
Dollar Tree has an analyst consensus of Moderate Buy, with a price target consensus of $94.73, representing a 13.7% upside. In a report issued on November 26, Credit Suisse also maintained a Buy rating on the stock with a $96 price target.
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Dollar Tree’s market cap is currently $19.82B and has a P/E ratio of 11.57. The company has a Price to Book ratio of 2.59.
Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DLTR in relation to earlier this year. Earlier this month, Thomas A. Saunders, a Director at DLTR bought 5,527 shares for a total of $352,256.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Dollar Tree, Inc. owns and operates discount variety stores offering merchandise at the fixed prices. It operates stores under the names Dollar Tree, Deal, Dollar Tree Deal, Dollar Giant and Dollar Bills. The company offers selection of everyday basic products and its supplement these basic, everyday items with seasonal, closeout and promotional merchandise.
