UPDATE: Citi Reiterates Buy Rating on Family Dollar, $70 PT

In a company update report issued earlier today, Citigroup reiterated its Buy rating for Family Dollar Stores Inc. FDO, and its price target of $70. In the report, Citigroup said, “In our view, an 18x multiple [of Citi's previous 2012 EPS estimate] is appropriate based on our constructive view on dollar store industry dynamics, the company's fundamental prospects, and reaccelerated square footage growth in the next few years. We expect Family Dollar to deliver operating margin improvement as strategic initiatives, merchandising improvements, and technology investments continue to gain traction.” Family Dollar Stores Inc. closed yesterday at $58.24.