Dollar Tree’s Family Dollar sale a ‘game-changer’, says Loop Capital

Loop Capital keeps a Hold rating and $75 price target on Dollar Tree (DLTR) but notes that the company’s announcement of an agreement to sell long-time albatross Family Dollar for $1.0B is a “game changer” for the stock. The sale not only rids the company of a money-losing distraction, which many investors thought was completely worthless but also returns Dollar Tree to its prior position as a pureplay single price point retailer with limited direct competition, the analyst tells investors in a research note, adding however that the stock remains somewhat of a “show me” story given management’s rocky recent track record of meeting consensus expectations.