Goldman Sachs Downgrades Family Dollar (FDO)
Goldman Sachs reported on Thursday that it has downgraded discounted retailer, Family Dollar Stores, Inc. (FDO).
The firm has reduced its rating on FDO from “Buy” to “Neutral,” and has lowered the company’s price target from $69 to $65. This price target suggests a 7% upside from the stock’s current price of $60.44.
An analyst from the firm commented, “ahead of the F2Q13 print, we expected re-accelerating 2H trends to re-rate the shares.”
“With results coming in even weaker than expected and gross margin pressure likely to linger, we are reducing our FY13/14/15 estimates to $3.77/$4.10/$4.60 from $3.99/$4.39/$4.99.”
Family Dollar shares were mostly flat during premarket trading Thursday. The stock has declined -7% in the past year.
The Bottom Line
Shares of Family Dollar Stores, Inc. (FDO) have a 1.72% yield, based on Wednesday’s closing price of $60.44.
Family Dollar Stores, Inc. (FDO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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