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Family Dollar Now Rated a “Buy” at Goldman Sachs (FDO)

Discount retailer Family Dollar Stores, Inc. ( FDO ) on Monday saw its rating, price target, and earnings estimates all boosted by analysts at Goldman Sachs.

The firm said it upgraded FDO from "Neutral" to "Buy" with a $60 price target, suggesting a 22% upside to the stock's Friday closing price of $49.19.

Goldman commented, "We believe FDO's accelerating share gains should power 20%-plus EPS growth to drive multiple expansion from today's discounted level of 14X." The firm boosted its estimates for the company through 2013, accordingly.

Family Dollar shares rose 91 cents, or +1.9%, in premarket trading Monday.

The Bottom Line

Shares of Family Dollar Stores ( FDO ) have a 1.46% dividend yield, based on Friday's closing stock price of $49.19. The stock has technical support in the $45-$46 price area. If the shares can firm up, we see overhead resistance around the $52-$54 price levels.

Family Dollar Stores, Inc. ( FDO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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