The firm said it reduced its rating on the discount variety store operator based on a valuation call.
Deutsche Bank said Dollar Tree's current valuation "captures favorable sentiment and strong fundamentals,' Benzinga.com reports.
Dollar Tree is currently in the process of attempting to take over rival discount store Family Dollar Stores Inc. (FDO) . There is a meeting scheduled for December 23 in which Family Dollar is due to vote on the deal, Bloomberg reported.
Separately, TheStreet Ratings team rates DOLLAR TREE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOLLAR TREE INC (DLTR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."