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Research Alert: CFRA Keeps Sell Opinion On Shares Of Dollar Tree, Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to $98 from $85, about 14x (up from 13x) our FY 27 (Jan.) EPS of $7.03 (raised from $6.49; FY 28 raised to $8.00 from $7.09). This multiple remains below the company's long-term mean of 18x, which we believe is justified given negative traffic trends and risks associated with the multi-price rollout, as we believe higher price points will erode the brand and increase competition with larger retail peers. While DLTR posted solid Apr-Q results, we were surprised by the magnitude of the share price reaction, particularly as traffic remains down Y/Y alongside back-half risks from weak consumer sentiment and cost pressures (e.g., freight/fuel surcharges). The key test will come in 2H on whether DLTR returns to traffic growth. We remain skeptical on improving traffic trends absent significant reinvestment. We maintain our Sell rating.

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