Goldman Sachs Upgrades DLTR to Buy (DLTR)

Goldman Sachs released a research report today upgrading Dollar Tree Stores, Inc. DLTR from Neutral to Buy.

We are upgrading DLTR to Buy from Neutral with 19% upside to our $61, 12-month price target based on (1) 1Q comp re-acceleration helped by later Easter, (2) continued EBIT margin expansion as comp leverage offsets fuel concerns, (3) optimal seasonal outperformance for the stock is 1Q and (4) compelling valuation of 13.3X our above-consensus FY11E EPS for a retailer with 7% square footage growth," Goldman Sachs writes. "In a world where consumers are seeking to strike the right balance between frugal and frivolous, we believe Dollar Tree is ideally positioned to gain relevance."

Goldman Sachs maintain its $61.00 PT.

Shares of DLTR closed Thursday at $51.31.