UPDATE: Canaccord Genuity Raises PT to $70 on Family Dollar Stores

Canaccord Genuity reiterated its Hold rating on Family Dollar Stores FDO and increased its price target from $65 to $70 as it shifted estimates forward one year. Canaccord Genuity said, "We expect gross margins to remain under pressure through FY13 as FDO continues to expand its assortment of lower-margin consumables. Our projections call for 25bps of gross margin deterioration in FY13 versus our prior forecast of a 5bps improvement. We are lowering our FY13 EPS estimate by $0.01 to $4.19. Management guided for FY13 EPS of $4.10-$4.40, and prior consensus was $4.22. … We are raising our DCF-generated price target from $65 to $70 as we roll our model forward one year. " Family Dollar Stores closed at $68.62 on Tuesday.