Deutsche Bank Comments On Family Dollar 2Q11 Results

According to Deutsche Bank, Family Dollar Store's FDO 2Q11 quarterly results and FY11 outlook show a company delivering a strong fundamental performance despite increasingly more difficult comparisons. Deutsche Bank reported that makes it a compelling investment story. “Maintain Buy rating and raising price target We are increasing our FY11 and FY12 estimates to $3.20 and $3.67. We are raising our price target to $60, based on 16x our CY12 EPS estimate of $3.83, in line with our long term growth rate assumption of 16%. This also matches the high end of Trian's $55 - $60 takeout bid. Risks include inflationary pressures and increased competition from WMT.” Family Dollar Store closed yesterday at $52.25.