Goldman Sachs Downgrades Dollar Tree

Goldman Sachs is out with a research report on Dollar Tree, Inc. DLTR and is downgrading the stock to Neutral with a $73 price target on shares. In a note to clients, Goldman Sachs writes, "We are downgrading DLTR to Neutral, as our thesis has unfolded and we now see a modest 6% upside to our upwardly revised 12-month $73 price target. Our upgrade hinged on both earnings and multiple expansion to propel stock outperformance. While EPS upside opportunity still remains, we see less multiple expansion as its re-rating to 17X, or a 17% premium to historical valuations, up from 13X, signals that the market has better appreciated DLTR's compelling secular story. Since upgrading DLTR to Buy on March 3, 2011, DLTR is up 34.1% versus the S&P down 1.1%; DLTR is 61.6% versus S&P up 20.0% over past 12 months." Shares of DLTR are down $1.43 in pre-market trading to $67.40.