Ahead of Family Dollar Stores, Inc. (FDO) second quarter earnings report on Wednesday, analysts at Goldman Sachs are saying that they expect the company to lower its fiscal 2013 estimates due to weather related issues
However, the analysts still maintain a bullish view on the discount retailer. The analysts rate FDO as “Buy” with a price target of $69. This target suggests a 16% upside to Friday’s closing price of $59.40.
“While we expect in-line F2Q results and lower FY13 guidance as the company copes with macro and weather-related headwinds, we continue to believe that this year will be a back-half story of accelerating comps, easing margin pressure and better SG&A control that should drive a rerating in valuation. Furthermore, FDO’s relative valuation is now in-line with the S&P 500 on below trend NTM EPS,” said Goldman analyst Stephen Grambling.
Family Dollar shares were down 48 cents, or -0.81%, during morning trading on Monday. The stock is down -7.08% year-to-date.
The Bottom Line
Shares of Family Dollar (FDO) have a dividend yield of 1.77% based on Monday’s intraday trading price of $58.87 and the company’s annualized dividend payout of $1.04 per share.
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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