Dollar Tree gets an upgrade at Jefferies on improving traffic

Jefferies upgrades Dollar Tree DLTR.O to "hold" from "underperform", citing improving traffic trends that suggest a positive inflection in customer demand.

The brokerage says strong comparable sales trends, improving traffic, and potential upside from its multi-price strategy support a more balanced outlook.

Jefferies also raised its price target to $135 from $85, representing a 3.4% upside to the stock's last close.

DLTR shares were marginally up in premarket trading.

Ten of 29 brokerages rate the stock "buy" or higher, 15 rate it "hold" and four rate it "sell" or lower; their median price target is $128.5, according to LSEG data.

The stock has gained 6.07% year to date versus a 12.4% rise in the S&P 500 .SPX.