Deutsche Bank Lowers Estimates on Fred's Inc. (FRED); Sell The Dead Head

Deutsche Bank maintains a 'Sell' on Fred's Inc. (NASDAQ: FRED) price target of $10.00.

Deutsche analyst said, "Fred’s comps fell 4.0% in June, below our forecast for flat comps and consensus of +0.3%. FRED stated that the shortfall was primarily due to an unprecedented shift from brand to generic in pharmacy sales. FRED now expects July SSS to be in a range of flat to down 3%, implying comps for 2Q to be ~neg. 1.8% (vs. prior flat guidance)..."

Q2 EPS estimate lowered from $0.16 to $0.14, FY12 lowered from $0.94 to $0.91 and FY13 from $1.02 to $1.00.

For an analyst ratings summary and ratings history on Fred's Inc. click here. For more ratings news on Fred's Inc. click here.

Shares of Fred's Inc. closed at $15.81 yesterday.

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