11:05 AM EDT, 06/05/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $4 to $105, 16x our FY 25 (Jan.) EPS of $6.56 (cut from $6.61; FY 26's up to $7.58 from $7.42) vs. the 20x five-year mean. FQ1 (Apr-Q) adj-EPS of $1.43 (-3% Y/Y) was in line with consensus on sales of $7,633M (+4.2% Y/Y), $34M below consensus. Under the Dollar Tree ( DLTR ) banner, comp sales grew just 1.7% Y/Y, as adverse weather and a soft Easter season negatively impacted sales and margins. To drive sales, traffic, and margins, the company is rolling out a multi-price point assortment into more Dollar Tree ( DLTR ) banners, thus pushing even further away from its historical fixed-price cap of $1 (recall in 2022 it raised prices from $1.00 to $1.25). We are wary of this move, as a multi-price point strategy could increase competition from larger retailers. The company closed 506 underperforming Family Dollar stores in FQ1 and will likely close another 90 or so stores in FQ2. DLTR also announced a strategic review of Family Dollar, which could include a potential sale. We keep a Sell rating.