NEW YORK (TheStreet) -- Shares of Dollar Tree (DLTR) - Get Report are up by 0.21% to $88.56 on Friday morning, after the Chesapeake, VA-based discount store operator reported better-than-expected 2016 first quarter earnings.
The company reported earnings of 98 cents per share for the first quarter yesterday, beating analysts expectations of 51 cents per share. Dollar Tree's $5.09 billion in revenue generally came in line with Wall Street estimates of revenue of $5.1 billion.
As a result, Jefferies increased its price target on the stock to $80 from $75 and reiterated its "hold" rating.
"DLTR core EBIT (earnings before interest and tax) margin improved after two quarters of declines," Jefferies analysts said in an investor note this morning.
On a constant currency basis, the company reported same-store sales rose 2.3% in the first quarter at Dollar Tree outlets, showing "expense management was also strong," the firm stated.
Separately, TheStreet Ratings rated Dollar Tree as a "buy" with a score of B.
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 articles's author. TheStreet Ratings has this to say about the recommendation:
This is driven by multiple strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks that are covered.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in net income.
TheStreet Ratings feels its strengths 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