Investment Analysts’ Weekly Ratings Changes for Family Dollar Stores (FDO)
Several investment firms have updated their stock ratings and price targets on shares of Family Dollar Stores (NYSE: FDO) in the last week:
- Family Dollar Stores was downgraded by analysts at Morgan Stanley from a “hold” rating to a “sell” rating. They now have a $79.00 price target on the stock, up previously from $60.53.
- Family Dollar Stores was upgraded by analysts at Jefferies Group from a “hold” rating to a “buy” rating. They now have a $79.00 price target on the stock, up previously from $55.00.
- Family Dollar Stores was downgraded by analysts at S&P Equity Research to a “strong sell” rating.
- Family Dollar Stores was upgraded by analysts at Gilford Securities from a “sell” rating to a “neutral” rating.
- Family Dollar Stores had its “underperform” rating reaffirmed by analysts at Bank of America. They now have a $53.00 price target on the stock. They wrote, “Following the disclosure after market on Friday that Icahn has taken a 9.4% stake, resulting in press speculation that he may push for a combination with DG, we have conducted a preliminary analysis of potential synergies and estimate that DG could pay up to $80/share for FDO in a cash and debt-finance acquisition, which would be 1) accretive in 2015 and 2) keep DG’s leverage to within 3.5x excluding merger synergies and 2.8x including synergies, preserving its investment grade rating. “We note that DG has not commented on a potential transaction and we are not suggesting interest on their part. While we believe shareholders of both companies could be favorable toward a potential combination at the right price, the main uncertainty in our minds is whether or not DG’s management would be willing to undertake such a transaction, given the execution risks involved. In fact, we have never seen a listed retailer within 11,000 stores purchase a troubled retailer with over 8,000 stores. “DG’s shareholder base is also much more fragmented than that of FDO. We note that FDO has just issued a one-year shareholder rights plan which caps ownership of all shareholders to 10% (without paying a control premium for all shares), increasing the uncertainties surrounding the situation.”
- Family Dollar Stores had its “underperform” rating reaffirmed by analysts at Zacks. They now have a $61.00 price target on the stock.
Shares of Family Dollar Stores, Inc. (NYSE:FDO) traded down 0.18% on Thursday, hitting $68.10. 213,388 shares of the company’s stock traded hands. Family Dollar Stores, Inc. has a 1-year low of $55.64 and a 1-year high of $75.29. The stock’s 50-day moving average is $60.04 and its 200-day moving average is $61.9. The company has a market cap of $7.751 billion and a price-to-earnings ratio of 20.05.
Family Dollar Stores, Inc (NYSE:FDO) operates a chain of more than 7,900 general merchandise retail discount stores in 46 states, providing consumers with a selection of merchandise in neighborhood stores.
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