Nomura Securities Maintains a 'Neutral' on Family Dollar Stores (FDO); Q4 Preview

Nomura Securities maintains a 'Neutral' on Family Dollar Stores Inc. (NYSE: FDO) price target of $56.00.

Nomura analyst, Aram Rubinson, said, "We expect EPS of $0.59 vs Street expectations of $0.63 and guidance of $0.62–0.70. Our observations suggest that FDO continues to manage labor very tightly, consistent with FQ3. The good news is that store conditions were mostly very good despite this. The negative implication—the same one that we surmised ahead of FQ3—is that FDO may be working exceptionally hard to hold on to slight gross profit dollars. If these dynamics pan out as we model—specifically, FQ4 comps +5.0%, GM -50bp and SG&A -35bp—we expect the stock to hold on to gains."

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 $54.84 yesterday.

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