Wal-Mart Stores Inc. was upgraded on Monday to buy from hold at Jefferies based on channel checks that indicate the retail giant’s store improvements are yielding sales results. Jefferies raised Wal-Mart’s price target to $82 from $60. Jefferies analysts conducted channel checks and surveys to determine that the company’s staff investments, price cutting, inventory management, grocery sourcing, and other efforts will produce long-lasting results and “should lead to upside in sales and an upward earnings per share revision cycle,” Jefferies wrote in a note. The bank also believes that online grocery will improve market share and lead to e-commerce sales growth. “Our Google consumer surveys showed those customers that were aware that Walmart is about to make incremental price investments were also those that expressed a willingness to shop Walmart more in the next year, suggesting that these actions should improve traffic,” bank analysts said. Wal-Mart shares are up 0.5% in Monday trading, and 16.2% for the year so far. The S&P 500 is up 3% in the year to date.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News