Wedbush Morgan cut its estimates on Dollar Tree Stores (DLTR

).

Analyst Joan Storms says earnings are in line with the consensus, but a penny below her estimate. She believes management chose to be overly conservative with respect to operating margin guidance for fiscal 2005 (Jan.), even though positive comments were made on a conference call regarding benefits from systems and supply-chain investments.

Despite management's guidance, which has built in some operating margin growth, Storms cut the $1.85 fiscal 2005 earnings per share estimate to $1.82, which is more in line with consensus. To be in sync with the company's revised forecast, she trimmed the $45 target to $44. She maintains her buy rating.