Goldman Discusses Family Dollar After Analyst Meeting (FDO)

Goldman Sachs is out with a research report on Family Dollar Stores, Inc. FDO, after the company held an analyst day yesterday. It has a Neutral rating and a $46 price target on shares. In the research note, Goldman writes, "Mgmt plans include new layout, new signage, redesigned checkout areas, and the doubling of freezers/coolers from 5 to 10. With strong early reads, the company plans to touch the entire chain within the next four years." Goldman went on to note, "3) Expanding operating margins – Mgmt expects flat gross margin (positive shrink & markdowns/reinvest savings from sourcing & private brands into assortments/drags from transportation & mix) and leverage of SG&A (through strong sales) to drive margin expansion." Shares of FDO gained 47 cents yesterday to close at $45.81, a gain of 1.04%.