Analysts Like Dollar Tree No Matter What Happens With Family Dollar

While most of the recent focus in the discount retail sector has been on competing bids for Family Dollar Stores, Inc. (NYSE:FDO), analysts are already looking past the hassle and like what they see in Dollar Tree, Inc. (NASDAQ:DLTR)'s plan for the future.

Not acquiring Family Dollar lets Dollar Tree focus on its main business

“Putting aside the potential acquisition, we see an additional change in the business model, as we now think the company may be making strategic margin investments to maintain traffic growth at the single-price-point Dollar Tree stores,” writes BMO Capital Markets analyst Wayne Hood, who rates Dollar Tree, Inc. (NASDAQ:DLTR)'s Market Perform with a $59 price target (currently $54.26).