NEW YORK (TheStreet) -- Dollar Tree (DLTR) - Get Report stock was downgraded to "underweight" from "neutral" at Atlantic Equities earlier today. The firm has a $68 price target on shares of the Chesapeake, VA-based discount-store operator.
Dollar Tree continues to fall short of competitors with regard to merchandising and pricing, Atlantic Equities said in a note cited by TheFly.
Lower-income consumers face multiple headwinds, and the comparable-store sales inflection expected by analysts is "too demanding" for the second half of the year, the firm noted.
Atlantic Equities anticipates multiple contraction only if Family Dollar (FDO) fails to turn its business around.
Shares of Dollar Tree were flat in pre-market trading on Tuesday after closing at $80 on Monday.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Dollar Tree's strengths such as its robust revenue growth, compelling growth in net income, good cash flow from operations, notable return on equity and solid stock price performance outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: DLTR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.