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Investing.com — Morgan Stanley told investors Friday that it wouldn’t surprise them to see Dollar Tree Inc (NASDAQ:DLTR) continue to drift toward the $170 to $180 range over the next several months.
Shares of Dollar Tree fell 3.7% on Friday, to around $141.
Analyst Vincent Sinisi told investors that they have missed the stock’s 70% rally over the past two months, which they feel is due to the “break the buck” announcement — Dollar Tree said it would raise prices to $1.25 — and with Mantle Ridge taking a stake in the company, and its third quarter earnings.
Morgan Stanley (NYSE:MS) highlighted a range of $120 to $150 for the stock in a previous note. However, they acknowledged that this was too conservative, causing them to adjust the range to the above-mentioned $170 to $180.
Sinisi raised the price target on Dollar Tree to $150 from $125, keeping an equal weight rating.
