MK Reiterates Outperform For Fred's, Inc.

Fred's, Inc. FRED saw comps increase +3.6% in August 2010 at the high end of management's 3Q guidance of 2.0-4.0%, positively impacted by strength in general merchandise departments and increased consumer traffic, Morgan Keegan reports. Morgan Keegan maintains its 3Q EPS of $0.18 and a guidance range of $0.16-$0.19. Morgan Keegan also reiterates its Outperform rating and $14 price target. Fred's, Inc. closed yesterday at $11.08.