Dollar Tree is tagged with a sell rating at CFRA
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CFRA lowered its rating on Dollar Tree (NASDAQ:DLTR) to Sell after having the discount retailer lined up with a Hold rating.
The firm warned that FY24 will be a challenging year for Dollar Tree (DLTR) due to continued inflationary pressures, particularly in labor and store overhead. In addition, the continued negative sales mix shift to lower-margin consumable products is seen hitting DLTR results, as well as more store, labor, and price investments in the Family Dollar business.
CFRA also noted that Dollar Tree (DLTR) has limited trade down benefits in comparison to other discounters with a wider product assortment and will begin to cycle the rollout of its new $1.25 price point in FQ1 of 2024. 
CFRA's new price target of $135 is 18X the reduced FY24 EPS estimate.
Shares of Dollar Tree (DLTR) drifted down 0.55% in premarket trading to $148.01.
See all the growth metrics on Dollar Tree.