Dahlman Rose Starts Family Dollar Stores (FDO) at Hold, New Growth Plans May Swing Both Ways
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Price: $79.39 --0%
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dahlman Rose initiates coverage on shares of Family Dollar Stores Inc. (NYSE: FDO) with a Hold rating while reporting that the company's strategy for expansion and improvements has been ramped up by the presence of activist investors.
The company has almost 7,000 single branded stores and has plans to open more. The firm reports that larger companies, such as Wal-Mart (NYSE: WMT) and Target (NYSE: TGT), are being to catch on to this growing segment and build new stores that match the market.
The firm notes that management has started on an accelerated store renovation program and transformation initiatives. They has done this before and resulted in a negative outcome. Ana analyst at Dahlman Rose reports, "However, this could provide useful upside, as the company lags its main competitor, Dollar General, in many metrics, despite having similar business models."
At a multiple of 18x its 2011 EPS of $3.08, the firm believes FDO shares are close to fair value. Its current 2012 estimate is $3.61.
For more ratings news on Family Dollar Stores Inc. click here and for the rating history of Family Dollar Stores Inc. click here.
Shares of Family Dollar Stores Inc. closed at $52.93 yesterday.
The company has almost 7,000 single branded stores and has plans to open more. The firm reports that larger companies, such as Wal-Mart (NYSE: WMT) and Target (NYSE: TGT), are being to catch on to this growing segment and build new stores that match the market.
The firm notes that management has started on an accelerated store renovation program and transformation initiatives. They has done this before and resulted in a negative outcome. Ana analyst at Dahlman Rose reports, "However, this could provide useful upside, as the company lags its main competitor, Dollar General, in many metrics, despite having similar business models."
At a multiple of 18x its 2011 EPS of $3.08, the firm believes FDO shares are close to fair value. Its current 2012 estimate is $3.61.
For more ratings news on Family Dollar Stores Inc. click here and for the rating history of Family Dollar Stores Inc. click here.
Shares of Family Dollar Stores Inc. closed at $52.93 yesterday.
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