Dollar Tree downgraded to Underperform from Market Perform at BMO Capital

BMO Capital analyst Kelly Bania downgraded Dollar Tree (DLTR) to Underperform from Market Perform with a price target of $95, down from $110. The current valuation and earnings expectations for the company may be too elevated given that Dollar Tree lacks investments and focus on offering a compelling digital strategy, which may limit top line growth over time, the analyst tells investors in a research note. Investors may have also potentially underappreciated dis-synergies, which adds risk to margin expansion goals, the firm adds.