Dollar Tree (DLTR) received a Hold rating and a $104 price target from Oppenheimer analyst Rupesh Parikh today. The company’s shares closed yesterday at $97.17.
Parikh commented:
“Following Starboard’s announced investment and the sharp move higher in DLTR shares, we spent time updating our investment thesis. Based on our work, we now view shares as fully valued and see the case for upside as less attractive from here. Starboard’s proposal holds merit, in our view, particularly with regards to a potential sale of the FDO asset, but we look less favorably upon a strategy to change the core proposition of the DLTR offering and its $1 fixed price point. Therefore, we are downgrading the shares to Perform from Outperform. We are adjusting our PT to $104 from $92 reflecting our scenario analysis as discussed in Appendix A and valuing off our new FY20 estimate (vs. FY19 previously).”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.5% and a 61.6% 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 Strong Buy, with a price target consensus of $105.27, which is an 8.3% upside from current levels. In a report issued on January 7, Buckingham also maintained a Hold rating on the stock with a $92 price target.
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Based on Dollar Tree’s latest earnings release for the quarter ending October 31, the company reported a quarterly net profit of $282 million. In comparison, last year the company had a net profit of $240 million.
Based on the recent corporate insider activity of 86 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. Most recently, in November 2018, 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.
