Piper Jaffray Lowers PT on Family Dollar Stores to $38 (FDO)

Piper Jaffray is out with its report this morning on Family Dollar Stores FDO, lowering its price target from $42 to $38. In a note to clients, Piper Jaffray writes, "We are reiterating our UW rating and lowering our PT from $42 to $38 based on our expectation for a deceleration of comps in the remainder of F11 and F12. While FDO increased store hours in F10 which helped to boost the comps, we believe that a deceleration in disposable income growth for lower income consumer will create headwinds for FDO for the remainder of F11 and into F12." At the time of posting, shares of FDO were trading at $41.67, down 1.77% from Tuesday's close.