Wedbush maintains rating of Underperform for Fred's (FRED)

Wedbush is maintaining their rating of underperform in regards to Fred's FRED in a research report, though they remain positive that Fred's is moving in the direction to improve margins long term. Their 12-month price target for Fred's is $12. Fred's, an operator of general merchandise discount stores, faces tough competition from Wal-Mart and other dollar stores, though Wedbush believes that its new national brands and the "Core 5 Program," highlighting areas of differentiation from their competitors, are helping it gain market share. There are also no expectations for Fred's to see any physical growth before 2011 by Wedbush, despite a healthy balance sheet.