- Credit Suisse updates on Dollar Tree (DLTR +3.2%) after last month's Q1 earnings report from the retailer sent shares lower.
- The analyst team thinks investors are negative over the results of the Family Dollar integration in particular.
- "Whereas results have not been anywhere near initial expectations when the deal closed almost 3 years ago, we believe sentiment is overly negative and that risk/reward actually skews to the upside. A sum-of-the-parts valuation, recent ramp in remodel activity, and potentially opportune timing in the economic cycle lead us to reiterate our Outperform rating," writes analyst Judah Frommer and team.
- CS says its price target of $93 on Dollar Tree is ~15.5X its near-term EPS estimate.
- Previously: Dollar Tree sheds 8% after weak profit guidance (May 31)