UPDATE - Barclays Upgraded Family Dollar Stores (FDO) to Overweight; Several Factors Driving Optimistic View
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Price: $79.39 --0%
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Barclays upgraded Family Dollar Stores Inc. (NYSE: FDO) from Equalweight to Overweight, price target raised from $57 to $63.
Barclays analyst says, "Following two days of investor meetings we hosted for Jim Kelly, FDO's Vice Chairman, and Kiley Rawlins, VP-Investor Relations, we have become more comfortable with FDO's ability to achieve strong and stable sales and earnings growth. A number of factors are driving our more optimistic view. First, we see FDO finally reaping the benefits of the significant investments in technology, business processes and people made over the past five years or so. The hiring of a strong merchant as the new COO is an indication that the company is now capable of running an efficient business on an everyday basis after years of being a work in process. Second, FDO will be using most of its capital to invest in growth in the future now that the returns it is achieving are strong. In fact, remodels and new stores will use much - but not all - of the company's free cashflow in FY12, making it one of a handful of consumer companies that are able to invest the majority of their cash in high-return growth opportunities. Third, the uncertainty related to a potentialbuyout has been eliminated now that Trian has withdrawn its bid and one of its executives has been added to FDO's Board. We think this will encourage more long-term investors to consider buying the stock."
"We are raising our FY12 EPS to $3.72 from $3.63 and our FY13 to $4.41 from $4.20, giving FDO similar growth prospects to Dollar Tree (Nasdaq: DLTR) or Dollar General (NYSE: DG)."
To see more ratings changes on FDO, Click Here
Barclays analyst says, "Following two days of investor meetings we hosted for Jim Kelly, FDO's Vice Chairman, and Kiley Rawlins, VP-Investor Relations, we have become more comfortable with FDO's ability to achieve strong and stable sales and earnings growth. A number of factors are driving our more optimistic view. First, we see FDO finally reaping the benefits of the significant investments in technology, business processes and people made over the past five years or so. The hiring of a strong merchant as the new COO is an indication that the company is now capable of running an efficient business on an everyday basis after years of being a work in process. Second, FDO will be using most of its capital to invest in growth in the future now that the returns it is achieving are strong. In fact, remodels and new stores will use much - but not all - of the company's free cashflow in FY12, making it one of a handful of consumer companies that are able to invest the majority of their cash in high-return growth opportunities. Third, the uncertainty related to a potentialbuyout has been eliminated now that Trian has withdrawn its bid and one of its executives has been added to FDO's Board. We think this will encourage more long-term investors to consider buying the stock."
"We are raising our FY12 EPS to $3.72 from $3.63 and our FY13 to $4.41 from $4.20, giving FDO similar growth prospects to Dollar Tree (Nasdaq: DLTR) or Dollar General (NYSE: DG)."
To see more ratings changes on FDO, Click Here
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