Dollar Tree downgraded to Hold at Loop Capital after another guidance cut

Loop Capital downgraded Dollar Tree to Hold from Buy with an unchanged $65 price target. The company has cut its guidance for the second time this year, with the Dollar Tree segment’s underperformance particularly troubling and counter to the management’s assertion that its miss was solely due to weak Easter results, the analyst tells investors in a research note. Loop adds that it sees no reason to believe that Dollar Tree’s performance will improve markedly anytime soon or that the visibility on the likelihood of the company being able to successfully dispose of Family Dollar will improve.