Credit Suisse Downgrades Family Dollar to Neutral

Credit Suisse downgraded its rating on Family Dollar FDO from Outperform to Neutral. In a research report published today, Credit Suisse states, "Based on current valuation, changing near term competitive dynamics, and potential margin pressure, we believe it is time to take a break regarding our Outperform rating on Family Dollar (lowering rating to Neutral). Gross margins will likely be capped in the near term and Dollar General's decision to do what is right for its customer and its longer term competitive position by going after market share could change the short term competitive dynamics of the dollar store segment. Typically trading at a discount since our upgrade, FDO is now trading at the high end of the valuation range both historically and relative to peers." At the moment, Credit Suisse has a price target of $55 placed on the company's stock. On Thursday, Family Dollar lost 3.19% of its value to end the day at $53.05.