UPDATE - UBS Initiates Coverage on Wal-Mart (WMT) with a Neutral; Taking Wait & See Approach
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Price: $76.33 -0.91%
Rating Summary:
7 Buy, 13 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
7 Buy, 13 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade WMT Now!
UPDATE - UBS initiates coverage on Wal-Mart (NYSE: WMT) with a Neutral. PT $59.
UBS analyst says, "Wal-mart domestic trends improving, but question of sustainability and “Too big to succeed?” remains unanswered as consumer and supplier landscape gets more complicated. View long term opportunity of margin reclamation from major suppliers as viable long term earnings driver, but unlikely/not possible until domestic business environment stabilizes."
"Following 9 quarters of U.S. comp declines Walmart’s investments in re-establishing its pricing leadership has now shown measurable returns as Q3 comps at Walmart U.S. were +1.3%. This turn in comps, combined with Walmart’s highly defensive earnings stream makes it an attractive “risk off” holding, in our view. However given macroeconomic and demographic headwinds in the U.S. we recommend investors take a wait and see approach on the sustainability of improvements."
Other points included: 1) Supplier Relationships Growing More Complicated – “Frenemies” and 2) Valuation in-line with 3 & 5-yr relative multiple
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UBS analyst says, "Wal-mart domestic trends improving, but question of sustainability and “Too big to succeed?” remains unanswered as consumer and supplier landscape gets more complicated. View long term opportunity of margin reclamation from major suppliers as viable long term earnings driver, but unlikely/not possible until domestic business environment stabilizes."
"Following 9 quarters of U.S. comp declines Walmart’s investments in re-establishing its pricing leadership has now shown measurable returns as Q3 comps at Walmart U.S. were +1.3%. This turn in comps, combined with Walmart’s highly defensive earnings stream makes it an attractive “risk off” holding, in our view. However given macroeconomic and demographic headwinds in the U.S. we recommend investors take a wait and see approach on the sustainability of improvements."
Other points included: 1) Supplier Relationships Growing More Complicated – “Frenemies” and 2) Valuation in-line with 3 & 5-yr relative multiple
To see more ratings on WMT, Click Here
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