Dollar Tree gets a downgrade from Jefferies as discount retailer struggles versus competitors

Jefferies thinks it's time to leave Dollar Tree behind. The bank downgraded shares of the discount retailer to underperform from hold. Analyst Corey Tarlowe also slashed his price target to $70 from $110, signaling a decline of 20% from Monday's close. Tarlowe emphasized that the current risk-reward balance looks unfavorable heading into Dollar Tree's upcoming Investor Day. Specifically, the analyst cited "operational complexity" as a major headwind to the stock. "A business that was once simple now faces structural change and operational complexity that are difficult to manage. Macro headwinds, rising competition, and margin pressure add further risk; and ahead of the Investor Day on 10/15, we are downgrading DLTR to Underperform," he wrote. "The event was launched during a period of stro