Guggenheim lowered the firm’s price target on Dollar Tree (DLTR) to $95 from $100 and keeps a Buy rating on the shares. The announced divestiture of the less well-positioned Family Dollar business “brings closure to a strategic mistake and shines the spotlight” on the secular potential of the Dollar Tree brand, the analyst tells investors. As the Family transaction closes, share buyback activity gains momentum, and comps accelerate, long-term EPS visibility of nearly $7 should improve, which argues for “a healthier valuation,” the analyst added.
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