BMO Capital Upgrades This Discount Store Chain - Read Why - Dollar Tree (NASDAQ:DLTR)

BMO Capital analyst Kelly Bania upgraded Dollar Tree Inc DLTR to Outperform from Market Perform with a price target of $170, up from $155, suggesting a 21% upside.
The analyst sees a favorable risk/reward at current share levels and believes consensus expectations are too low for the gross margin impact of the shift to $1.25 at Dollar Tree.
Related: Is Dollar Tree Becoming The $1.25 Store? Here's What Investors And Shoppers Should Know
Bania added that if BMO is wrong and the company's 2022 guidance is disappointing, this could increase the possibility of activist investor-led management changes, which could also be a positive catalyst.
Price Action: DLTR shares are trading lower by 0.11% at $140.53 in premarket on the last check Monday.

Momentum50.70

Growth4.81

Quality28.87

Value63.40

Short

Medium

Long

BMO Capital Upgrades This Discount Store Chain - Read Why