UPDATE: Deutsche Bank Upgrades Family Dollar Stores to Buy on Sentiment
In a report published by Deutsche Bank, analyst Paul Trussell upgraded Family Dollar Store (NYSE: FDO) from Hold to Buy and establishes a $71 price target.
Deutsche Bank reported that, “Our call is based on two key points, including: (1) our belief that the fear around FDO's future margin degradation (particularly on the GPM line) has peaked, and should be reflected is in the majority of Street forecasts at this point, and the worst should be in the rear view mirror post upcoming 2Q13 results in Mid-April; and (2) sales expectations, at times irrational during the previous twelve months - based on the potential of various initiatives, appear more “realistic” for the second half of this year (we are modeling SSS +4.3%).”
Shares of Family Dollar Stores closed at $59.85 on Thursday.
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