Dollar Tree (NASDAQ:DLTR) Maintains Strong Defensive Profile

Even though the dollar store sector continues to outperform the rest of retail, Jefferies likes Dollar Tree (NASDAQ:DLTR) the best among the grouping, based on a strong defensive profile. They maintain their "Buy" rating on the company.

Jefferies said, "In an environment where the dollar store group has outperformed retail, we still favor Dollar Tree for its defensive profile, consistent performance and relatively strong unit growth story. Sales growth is strong and management continues to demonstrate that it can manage through challenging environments and still beat."

The improvement of merchandise in the store is also helping them appeal to a larger consumer base, added Jefferies.

Earnings per share estimates for full year 2011 were increased from $3.03 to $3.20 and from $3.53 to $3.75 for full year 2012.

Dollar Tree closed Friday at $53.41, dropping $0.40, or 0.74 percent. Jefferies has a price target on them of $62, raising it from $57.