Analyst Scot Ciccarelli from Truist Financial maintained a Buy rating on Dollar Tree and keeping the price target at $136.00.
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Scot Ciccarelli has given his Buy rating due to a combination of factors that suggest potential growth for Dollar Tree. Despite a recent slowdown in transactions during the third quarter, attributed to store-level disruptions and changes in consumer purchasing behavior, Ciccarelli believes these issues are temporary. He anticipates improvement in transaction trends as Dollar Tree enhances store standards and optimizes inventory offerings, which should boost sales productivity.
Furthermore, Dollar Tree is actively working on raising store standards, addressing issues such as in-stock levels, cleanliness, and customer service. With over half of the stores previously rated as sub-standard, the company’s strategic efforts to improve these areas are expected to lead to better financial performance. Ciccarelli remains optimistic about Dollar Tree’s initiatives to enhance their merchandise assortment and store operations, supporting his Buy rating with a price target of $136.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $136.00 price target.