Nomura Securities Maintains a 'Neutral' on Family Dollar Stores (FDO) Following Q1 Result

Nomura Securities maintains a 'Neutral' on Family Dollar Stores (NYSE: FDO) price target of $55.00.

Nomura analyst, Aram Rubinson, said, "FQ1 EPS were technically in line, but fell short qualitatively. EPS got a $0.07 assist from workers comp and GP Comps deteriorated to a meager 2%, suggesting FDO needs to coax customers to buy. Gross margin fell as the mix evolved towards consumables and inventory will likely remain high as FDO transitions in new SKUs. FDO has too many balls in the air, in our view. It is accelerating remodels, accelerating new store openings, venturing into California and accelerating its mix shift to Consumables. Our $55 price target reflects 7.0x our F13 EBITDA estimate of $985m."

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 $53.63 yesterday.

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