Sam Boughedda

Investing.com — Dollar Tree Inc ‘s (NASDAQ:) price target was cut to $160 from $180 by Telsey analyst Joseph Feldman on Tuesday.

Feldman retained an Outperform rating despite the reduction in the target. The company’s results for the first quarter were released before Thursday’s open.

Feldman stated that “We will maintain our 1Q22, 2022 EPS estimations, reflecting a positive Core Dollar Tree comp, helped by an increased in prices to $1.25 previously.”

The company would also benefit from an increase in food product demand and inflation as well as the gains made by several company-specific initiatives.

On profitability, higher prices for core Dollar Tree products should be offset by high costs of fuel, supply chain and labor. The analyst said that consumers will seek to increase their income in an environment with high inflation and tight budgets. This should lead to a shift towards dollar stores.

Dollar Tree shares rose 0.2% Tuesday but are still down over 7% for the year.