UPDATE: Deutsche Bank Lowers PT on Family Dollar Stores to $57

Deutsche Bank has published a research report on Family Dollar Stores FDO and has lowered the price target from $60 to $57 after continued heavy inventory levels present within the company. In the report, Deutsche Bank writes, "Inventory was heavier than anticipated in 1Q12 (inv. growth 2x sales growth), which mgmt attributed to the rapid increase in Food & HBA SKU's last Spring. Looking ahead, FDO will continue to add SKU's in these categories in Feb. (~300 SKU's in Food/HBA), which could further strain the disjointed relationship of sales/inventory levels. Also, on recent store checks, we witnessed seasonal packaway inventory (FDO states this is standard procedure), magnifying our ongoing inventory concerns, as well as high levels of discretionary product." Deutsche Bank maintains its Hold rating on Family Dollar Stores, which is currently trading down $0.23 from yesterday's $55.20 closing price.