Dollar Tree price target lowered to $67 from $112 at Piper Sandler

Piper Sandler analyst Peter Keith lowered the firm’s price target on Dollar Tree (DLTR) to $67 from $112 and keeps a Neutral rating on the shares following a notable Q2 miss and guide-down. Dollar Tree is blaming economic weakness impacting discretionary purchases from its middle and upper-income customers. What is concerning to Piper is that both Walmart (WMT) and Target (TGT) cited sequential improvement in discretionary sales during Q2, and Dollar Tree isn’t acknowledging share loss. Second half of the year comparable sales guidance looks aggressive to the firm as it bakes in comp acceleration.