Wedbush Securities Reiterates Neutral Rating, $14 PT on Fred's
In a report published Friday, Wedbush Securities reiterated its Neutral rating and $14.00 price target on Fred's (NASDAQ: FRED).
Wedbush Securities noted, “Overall, we are cautiously optimistic for the Holiday quarter and therefore maintain our NEUTRAL rating. The company's business appears to be better managed, despite weaker-than-expected comps in recent months, due to controlled markdowns and better pharmacy margins. However, we continue to have some concerns about the core customer with ongoing macroeconomic 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. The company is also introducing more national brands, expanding private label, and accelerating pharmacy growth.”
Fred's closed on Thursday at $13.30.
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