Shares of discount retailer Dollar Tree (DLTR) - Get Dollar Tree, Inc. Report  were rising 3% Tuesday to $106.88 after analysts at JPMorgan upgraded the stock to overweight from neutral.

The firm also assigned the company a $122 price target, representing a 17.5% upside from the stock's closing price on Monday of $103.78.

"Our top-line and margin builds across banners support an inflection to high-single net income growth and low-double-digit consolidated EPS growth beyond FY19," the analysts said.

JPMorgan believes that Dollar Tree can see more than a billion dollars in free cash flow generation by fiscal 2020 thanks to its stability, which makes it an attractive buy for investors. 

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Dollar Tree shares have risen more than 22% year to date, and the stock has climbed nearly 30% over the past 12 months.