- Telsey Advisory Group analyst Joseph Feldman was a little surprised to see several executives changes all at once at Dollar Tree Inc (NASDAQ:DLTR).
- The analyst described the changes as a bold move that should help the company recruit new leaders to fill key roles without the need for secrecy and potential ill-will.
- The discount variety store chain announced CFO Kevin Wample will step down after the appointment of a successor. The company's Chief Legal Officer, COO, CIO, and Chief Strategy officer are no longer with the company.
- Feldman expects changes to the board, particularly the recent appointment of Chairman Rick Dreiling, backed by activist investor Mantle Ridge, and now a new leadership team, should help accelerate growth, improve execution, and enhance shareholder value.
- The analyst expects the new recruits to provide DLTR with a fresh perspective.
- The analyst believes Dollar Tree is capable of a multi-year runway of growth as it opens new stores and enhances merchandise value through its higher price base price point of $1.25.
- Feldman maintained an Outperform rating and price target of $185.
- Price Action: DLTR shares are trading higher by 0.89% at $154.93 on the last check Wednesday.
- Photo Via Wikimedia Commons
