UPDATE: Jefferies & Company Reiterates Hold Rating, Lowers PT on Family Dollar Stores

In a report published Monday, Jefferies & Company reiterated its Hold rating on Family Dollar Stores

, but lowered its price target from $63.00 to $57.00. Jefferies noted, “FDO shares could trade in a narrow range as investors discount earnings downside risk in a space that has seen a turn for the worse. Sales came in better than expected but EPS missed expectations on a 112 bps y/y gross margin decline. The lowest margin consumables are providing top-line growth and promotional levels remain high. Soft December sales were hurt by a poor performance in discretionary.” Family Dollar Stores closed on Friday at $55.74.