Deutsche Bank: Street Up to Speed on Family Dollar Stores

In a research report published today by Deutsche Bank, the Street is up to speed on several factors surrounding Family Dollar Stores FDO. According to Deutsche Bank, these include, “(1) heavy inventory levels, (2) a slower comp pace vs. peers, (3) arguably aggressive FY12 EPS guidance, & (4) a string of very low quality EPS prints recently. While we would normally prefer this set-up on the long-side, these issues suggest downside EPS exposure - one of the few retailers we cover where such risk exists. All told, we're comfortably sidelined into the print next week (3/28) - preferring both DG and DLTR in the dollar store arena.” Deutsche Bank maintains its Hold rating and $57 PT on Family Dollar Stores, which closed yesterday at $56.41.