Goldman Sachs Resumes Family Dollar Stores Inc. (FDO) at Neutral

Goldman Sachs resumed coverage on Family Dollar Stores Inc. (NYSE: FDO) with a Neutral rating and a price target of $68.00.

Analyst Stephen Grambling said, "We have removed the NR designation from Family Dollar Stores, Inc. (FDO) shares following shareholder approval of the pending merger with Dollar Tree and failed tender offer for FDO shares by Dollar General. We now have a Neutral rating on FDO with a 12-month price target of $68 equating to 11% downside. Our investment view is predicated on our belief the pending merger with Dollar Tree is necessary to support the shares amidst ongoing weak underlying fundamentals on both an absolute basis and relative to peers – comp growth remained negative last quarter and EBIT declined 34% yoy, marking the fifth consecutive quarterly decline."

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 $76.22 yesterday.

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