UPDATE: Nomura Reiterates Neutral Rating, Raises PT on Family Dollar Stores Following Fiscal Q3 Report

In a report published Thursday, Nomura analyst Aram Rubinson reiterated a Neutral rating on Family Dollar Stores FDO, and raised the price target from $63.00 to $65.00. In the report, Nomura noted, “FDO's fiscal Q3 report contained some significant developments. Foremost was management confirming that it will not pursue another major Consumables push after its current efforts anniversary, implying good things for FDO and the channel. By stealing ‘oxygen' from the Dollar channel—or taking out-sized Consumable share gains via inventory—FDO has taken the strategy out of the hands of others who had previously found greater success with it. We now model FDO's Consumable comps to increase about 5% in coming quarters. FDO's new focus on managing for profitability in a lower-growth environment sounded rational and encouraging for it and the sector.” Family Dollar Stores closed on Wednesday at $68.50.