Deutsche Bank Maintains Buy on Family Dollar Stores

Deutsche Bank is out with its report today on Family Dollar Stores FDO, maintaining Buy. In a note to clients, Deutsche Bank writes, "We conducted a pricing study between Family Dollar and Dollar General to gauge potential sales and margin pressures on FDO as a result of DG's sharper pricing strategy and believe that FDO is effectively using zone pricing techniques to balance sales and margin growth in an inflationary environment. As a result, we are comfortable that FDO will be able to generate a solid comp without much gross margin pressure this quarter and we maintain our Buy rating." Deutsche Bank maintains a $60 PT on FDO. Shares of FDO closed Wednesday at $53.34.