BofA raised the firm’s price target on Dollar Tree (DLTR) to $75 from $70 but keeps an Underperform rating on the shares. The company’s consumables comps grew 6.7%, while discretionary was 6.1%, the analyst tells investors in a research note. Dollar Tree’s higher than expected gross margin was also driven by lower merchandise costs, favorable pricing, and favorable shrink, partially offset by higher markdown reserves on aged inventory, distribution costs, and shrink, the firm added.
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