Market Overview

UPDATE: Citigroup Reiterates Buy Rating, Lowers PT on Family Dollar Stores

Related FDO
UBS Initiates Coverage On Family Dollar Stores, Inc., Dollar General Corp. And Dollar Tree, Inc.
Benzinga's M&A Chatter for Wednesday September 10, 2014
Family Dollar Rejects Dollar General Proposal (Fox Business)

In a report published Friday, Citigroup reiterated its Buy rating on Family Dollar Stores (NYSE: FDO), but lowered its price target from $79.00 to $69.00.

Citigroup noted, “FDO's EPS of $0.69 came as a surprise following very strong SSS of 6.6%. The variance vs. our estimate was driven by greater gross margin pressure than planned, resulting from FDO's sales-driving initiatives, partially offset by higher SSS and slightly more SG&A leverage than expected. While gross margins could continue to be pressured by stronger sales of lower-margin consumables, and increased inventory shrinkage, much of the heavy lifting associated with merchandising initiatives (i.e. markdowns) has been completed and SSS growth in consumables should accelerate in F2013. We reiterate our Buy rating.”

Family Dollar Stores closed on Thursday at $55.74.

Latest Ratings for FDO

DateFirmActionFromTo
Sep 2014UBSInitiates Coverage onNeutral
Jul 2014Piper JaffrayUpgradesUnderweightNeutral
Jul 2014Deutsche BankMaintainsHold

View More Analyst Ratings for FDO
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Price Target Analyst Ratings

 

Related Articles (FDO)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters