Wedbush Maintains Rating, PT On FRED In Preview Of Q1

Wedbush is maintaining its Neutral rating and its $14 price target on Fred's Inc. FRED as the company prepares to report its Q1 earnings before market open this upcoming Thursday. In the report, Wedbush writes, “Fred's is executing a successful turnaround through implementing a number of new initiatives to differentiate Fred's for the near and long term. The “Core Five” program highlights trip-driving (and higher margin) merchandise categories: pet, celebration, home, household supplies and pharmacy. The company is also introducing more national brands and expanding its private label. Fred's is resetting stores to accommodate these changes and sprucing up its marketing to increase brand awareness and drive traffic. We believe Fred's is well positioned with its convenience orientation should higher gas prices impact shopping trips, although customers' spending could still be impacted.” FRED closed Friday at $13.65.