Wal-mart (WMT): Guidance Cut Coming - UBS
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UBS analyst, Michael Laser, reiterated his Neutral on shares of Wal-Mart (NYSE: WMT) ahead of the company's analyst meeting.
Last year, the company anticipated low single digit EPS growth in FY’18 but the analyst thinks that expectation is likely to be reduced and management will point to FY’19 as the year when its EPS inflects higher.
The analyst stated "There are a number of moving pieces that have impacted WMT’s EPS outlook in the last few Qs. Between FX, the Jet acquisition, and store closures, it should see a $0.20 to $0.25 EPS drag. The key in our view is whether it can sustain its top-line momentum as it invests further in prices & harvests a return on its labor investments. With the shares trading at 17x EPS & 8x EBITDA, the market already appears pretty optimistic".
No change to the price target of $73.
Shares of Wal-Mart closed at $70.73 yesterday.
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