Barclays Maintains an 'Overweight' Rating on Family Dollar (FDO); 4Q10 Earnings Preview

September 23, 2010 2:21 PM EDT
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Price: $79.39 --0%

Rating Summary:
    0 Buy, 23 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 15 | Down: 11 | New: 9
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Barclays maintains an 'Overweight' rating on Family Dollar (NYSE: FDO), price target $52.

Barclays analyst says, "We are forecasting 4Q EPS of $0.49, $0.02 below consensus but towards the upper end of FDO's guidance of $0.46-$0.51. FDO has already reported total sales for 4Q10 of $1.96B, a rise of 8.0%, and same-store sales growth of 6.1%. Sales were strongest in consumables and all categories were positive, as in 3Q10...We are expecting the operating margin to expand by 38 bp, to 5.4%, with the gross margin increasing by 10 bp to 34.6% and SG&A dollars growing by 7.0%."

"Rather than this suggesting FDO is overvalued on a relative basis, we think this multiple reflects the potential for unique catalysts and limited downside due to a strong business outlook."

To see all the upgrades/downgrades on shares of FDO, visit our Analyst Ratings page.

Shares are trading at $43.59, up $0.15 (+0.35%) this afternoon.

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