Goldman Sachs Remains Bullish on Family Dollar Ahead of Q1 Earnings (FDO)

Goldman Sachs Remains Bullish on Family Dollar Ahead of Q1 Earnings (FDO)


Analysts at Goldman Sachs maintain a “Buy” rating for Family Dollar Stores, Inc. (FDO) ahead of the discount retailer’s first quarter earnings report.

Family Dollar will release its 2013 first quarter earnings report before the markets open on Thursday, January 3. Heading into this event Goldman Sachs is bullish on Family Dollar expectations, maintaining its “Buy” rating with a $77 price target. The target is a +22.3% upside to Monday’s closing price of $62.83.

The firm believes FDO downside is limited given lower expectations.

“Despite the more challenging industry backdrop, we continue to expect accelerating double-digit EBITDA and EPS growth throughout FY13 as consumers begin to respond to FDO’s sales-driving initiatives,” said Goldman Sachs analyst Stephen Grambling.

Family Dollar shares were flat in premarket trading. The stock is up +8.97% year-to-date.

The Bottom Line
Shares of Family Dollar Stores (FDO) have a 1.34% dividend yield, based on Monday’s closing stock price of $62.83. The stock has technical support in the $58-$61 price area. If the shares can firm up, we see overhead resistance around the $65-$67 price levels.

Family Dollar Stores, Inc. (FDO) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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