Why Family Dollar Stores (FDO) Stock Is Up This Morning

NEW YORK (TheStreet) -- Shares of Family Dollar Stores (FDO) are up 2.14% to $69.60 in pre-market trade after activist investor Carl Icahn asked the troubled retailer to immediately put itself up for sale, threatening a proxy war to replace the company's entire board if a sale process was not started, Reuters reports.

Icahn recently became Family Dollar's largest shareholder and has also asked that three of his representatives be added to the company's board immediately and be part of a new committee tasked with finding a buyer, Reuters said.

Must Read: Warren Buffett's 25 Favorite Growth Stocks

TheStreet Ratings team rates FAMILY DOLLAR STORES as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate FAMILY DOLLAR STORES (FDO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

If you liked this article you might like

Starbucks' Howard Schultz Reveals the Sight of Feared Activist Carl Icahn Causes Him to Look Away

Here's What Carl Icahn Bought and Sold in the First Quarter

Dollar Tree Intends to Be 'Mindful' of New Price Slashing Campaigns By Walmart and Target

The Value of a Dollar (Tree)

Strategy for the Months Ahead; Twitter Will Fly Solo: Best of Kass