Goldman Sachs Discusses Family Dollar

Goldman Sachs is out with a research report on Family Dollar Stores (NYSE: FDO) and it is on America's Buy List and discussed the name after Nelson Peltz withdrew his offer for the company.

In a note to clients, Goldman Sachs writes, "While today's agreement renders a transaction less likely, it refocuses attention on fundamentals which have and should continue to improve. Since February, shares have traded around takeover speculation which placed a ceiling on the stock around $55, the low end of Trian's proposed range. The withdrawal of the deal now shifts the focus back to fundamentals, which are gaining momentum heading into 2012."

Shares of FDO lost $2.32 yesterday to close at $50.99.