Morgan Stanley Resumes Coverage on Family Dollar Stores

Morgan Stanley is out with a research report on Family Dollar Stores Inc (NYSE: FDO) and it is resuming coverage with an Overweight rating and a $67 price target on shares.

In a note to clients, Morgan Stanley writes, "We are introducing F2012 estimates of $3.72 versus consensus of $3.64 and F2013 estimates of $4.45 versus consensus of $4.21 (6% above consensus). We are resuming coverage with an Overweight rating, and our $67 price target provides 15% upside from current levels. We note that the multiple could expand as comps accelerate, making our bull case 46% possible. We also favor the bull-to-bear ratio of 2 to 1."

Shares of FDO gained 10 cents yesterday to close at $58.40.