Morgan Keegan Maintains Fred's Outperform

Morgan Keegan maintained its Fred's (NASDAQ: FRED) Outperform rating in a research report published today. Morgan Keegan has a $16 price target on the company.

In the report, Morgan Keegan states, "We remain optimistic as we believe significant, long term opportunities exist for FRED. The increase of generic drug sales should improve margins over time and warm weather had a significant impact on Q4 results."

Shares of Fred's were trading at $14.91 at the time of posting, up 1.60% from Wednesday's market close.