UPDATE: Wedbush Maintains Neutral, $14 PT on Fred's Following Disappointing June Comps
Wedbush maintained its Neutral rating and $14 price target on Fred's (NASDAQ: FRED) as June comps came in below consensus.
In the report, Wedbush stated, "The company's business appears to be better managed despite weaker-than-expected comps for several months due to controlled markdowns and better pharmacy margins from ongoing shift to generics. However, we continue to have some concerns about the core customer with ongoing macro headwinds. Fred's is in the midst of executing a turnaround by implementing a number of new initiatives to differentiate Fred's, including the “Core Five” program for trip-driving (and higher margin) merchandise categories: pet, celebration, home, household supplies and pharmacy."
Shares of Fred's were trading at $15.08 at the time of posting, down 4.62% from Tuesday's market close.
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