Jefferies Maintains FDO $49 PT and Hold Rating

Jefferies issued a report responding to Family Dollar's FDO preannounced 2Q EPS.

In the report Jefferies writes, "We continue to believe the risk of an earnings miss in 2H is elevated as sales comparisons get more challenging and expectations are set high. Relative to our expectations, remodel activity was lighter than we anticipated in 2Q, potentially explaining part of the upside to our $0.95 estimate. We are anticipating higher expense growth in 2H, so we are upping our 2Q estimate, but lowering our 3Q estimate."

FDO sold for $51.27 at closing yesterday. FDO has a $49 PT and a Hold Rating.