NEW YORK (TheStreet) -- Dollar Tree (DLTR) - Get Dollar Tree, Inc. Report stock is climbing 0.86% to $67.57 in early morning trading on Friday after an upgrade to "buy" from "neutral" at Bank of America/Merrill Lynch.

Dollar Tree acquired discount store operator Family Dollar  (FDO)  in July, and BofA/Merrill Lynch said it thinks the company's synergy target is "conservative" and integration benefits are "under-appreciated" by the market.

Dollar Tree faces integration risk as it integrates upwards of 8,000 Family Dollar stores, but lower gas prices, a weakened Chinese currency and improved employment and wages should positively impact the company, according to BofA/Merrill Lynch. 

Additionally, on Tuesday the company posted earnings of 67 cents per share on revenue of $3.01 billion. Its earnings results were ahead of analysts' estimates of earnings of 62 cents a share on revenue of $3.04 billion.

Dollar Tree, based in Chesapeake, VA, operates discount variety stores that sell items at the fixed price of $1. 

Separately, TheStreet Ratings team rates DOLLAR TREE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

TheStreet Recommends

"We rate DOLLAR TREE INC (DLTR) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

You can view the full analysis from the report here: DLTR Ratings Report

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