UPDATE: Barclays Downgrades Family Dollar Stores Inc. (FDO) to Equalweight; Safer Bet - Swap Into Dollar General (DG)

June 15, 2012 7:20 AM EDT
Get Alerts FDO Hot Sheet
Price: $79.39 --0%

Rating Summary:
    0 Buy, 23 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - June 15, 2012 12:45 PM EDT)

Barclays downgraded Family Dollar Stores Inc. (NYSE: FDO) from Overweight to Equalweight with a price target of $73.00 (from $68.00).

Analyst, Meredith Adler, said, "Perhaps the market is prepared to be patient, but we worry that the recent upside in the stock implies EPS expectations have gotten too high. Investors may need to see EPS hit the high end of guidance or even beat it in the next few quarters to justify the current stock price. In the past six quarters, FDO only beat the high end of its guidance once, while it also missed the low end once."

Adler suggests swapping into Dollar General (NYSE: DG) from Family Dollar, citing a safer choice with more upside and less downside risk. She raises DG's price target from $52 to $58.

For an analyst ratings summary and ratings history on Family Dollar Stores Inc. click here. For more ratings news on Family Dollar Stores Inc. click here.

Shares of Family Dollar Stores Inc. closed at $72.85 yesterday.

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