UPDATE: JP Morgan Downgrades Family Dollar Stores to Neutral; Risk/Reward Now Balanced
JP Morgan reduced its rating on Family Dollar Stores (NYSE: FDO) from Overweight to Neutral and lowered its price target from $75 to $70.
JP Morgan noted, "Taking a step back FDO is up 30% over the past year (significantly outpacing DG/DLTR +12%/-11% and S&P +4.8%) given new mgmt at the helm (M. Bloom) and operational levers put in place (re-worked marketing approach, private label, and direct sourcing penetration). Net/net – we believe in Bloom and FDO's array of top-line (national brand additions, tobacco) and bottom-line drivers but believe improvement is largely priced into the stock at this level (particularly trading at 109 bps premium to DG/DLTR) with competitive pressures heating up."
Family Dollar Stores closed at $70.58 on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: JP Morgan