Nomura Securities Maintains a 'Neutral' on Family Dollar Stores (FDO); Adjusting Estimates & PT Ahead of Q2 Results
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Price: $79.39 --0%
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Nomura Securities maintains a 'Neutral' on Family Dollar Stores Inc. (NYSE: FDO) price target raised from $55 to $58.
Analyst, Aram Rubinson, said, "We are reducing our 2Q estimate from $1.13 to $1.09 (assumes 4.5% comp), vs. Street at $1.13. Our 2012 / 2013 EPS estimates go from $3.47 / $3.90 to $3.42 / $3.85 vs. Street at $3.62 / $4.17, respectively. Our estimate change reflects a more appropriate Q1-Q2 gross margin progression. We are now building in a 50bps sequential drop vs. a prior drop of only 20bps. However, the attractive valuation has caught our eye. We are raising our target to $58, based on 7.5x F13E EBITDA. Given the wide gap in EV/Sales, FDO may offer more upside over time. We maintain a Neutral stance, as we believe cash flow generation fails to offer a margin of safety as capex accelerates."
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 $58.44 yesterday.
Analyst, Aram Rubinson, said, "We are reducing our 2Q estimate from $1.13 to $1.09 (assumes 4.5% comp), vs. Street at $1.13. Our 2012 / 2013 EPS estimates go from $3.47 / $3.90 to $3.42 / $3.85 vs. Street at $3.62 / $4.17, respectively. Our estimate change reflects a more appropriate Q1-Q2 gross margin progression. We are now building in a 50bps sequential drop vs. a prior drop of only 20bps. However, the attractive valuation has caught our eye. We are raising our target to $58, based on 7.5x F13E EBITDA. Given the wide gap in EV/Sales, FDO may offer more upside over time. We maintain a Neutral stance, as we believe cash flow generation fails to offer a margin of safety as capex accelerates."
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 $58.44 yesterday.
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