Collins Stewart Starts Family Dollar Stores (FDO) at Neutral; Improved Consumables Assortment Should Drive Traffic
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Price: $79.39 --0%
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Collins Stewart initiates coverage on Family Dollar Stores (NYSE: FDO) with a Neutral. PT $63.00.
Collins analyst says, "Higher customer traffic and average ticket have driven SSS growth, as shoppers have shown a greater penchant for value in the current economic climate. We believe an expanded consumables selection will drive traffic, especially in an inflationary environment for food and other household necessities. The company is in the midst of an aggressive store opening and remodeling initiative, one that will require a significant investment of capital. We believe that an expanded U.S. footprint should support the high-single-digit net annual sales growth we project through FY15. Takeover speculation subsided in late September, when Trian Group, which had been pursuing FDO since February, pulled its bid in exchange for a seat on the board. Shares have appreciated approximately 17% YTD, versus a 3% decline for the S&P 500 index and a 2% advance for the RLX index. FDO shares appear fairly valued, in our view, trading at 15.5x our CY12 EPS estimate and 7.5x CY12E EV/EBITDA."
For an analyst ratings summary and ratings history on Family Dollar Stores click here. For more ratings news on Family Dollar Stores click here.
Shares of Family Dollar Stores closed at $57.92 yesterday.
Collins analyst says, "Higher customer traffic and average ticket have driven SSS growth, as shoppers have shown a greater penchant for value in the current economic climate. We believe an expanded consumables selection will drive traffic, especially in an inflationary environment for food and other household necessities. The company is in the midst of an aggressive store opening and remodeling initiative, one that will require a significant investment of capital. We believe that an expanded U.S. footprint should support the high-single-digit net annual sales growth we project through FY15. Takeover speculation subsided in late September, when Trian Group, which had been pursuing FDO since February, pulled its bid in exchange for a seat on the board. Shares have appreciated approximately 17% YTD, versus a 3% decline for the S&P 500 index and a 2% advance for the RLX index. FDO shares appear fairly valued, in our view, trading at 15.5x our CY12 EPS estimate and 7.5x CY12E EV/EBITDA."
For an analyst ratings summary and ratings history on Family Dollar Stores click here. For more ratings news on Family Dollar Stores click here.
Shares of Family Dollar Stores closed at $57.92 yesterday.
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