Wall Street Strategies Upgrades Wal-Mart (WMT) to Hold

Wall Street Strategies upgraded Wal-Mart (NYSE: WMT) from Sell to Hold with a price target of $53 (up from $45).

Analyst Brian Sozzi states, "As we have consistently stated since our Sell rating went into action in December 2010, any indication that life was being breathed back into the U.S. division would trigger a less negative view on the stock."

A few aspects of the U.S. that could get the depressed minds of investors on Wal-Mart awakened:

• Comps gained momentum each month of the quarter. Importantly, July was
  positive, driven by both components to comps (traffic and ticket).
  
• Y/Y inventory growth improved compared to 1Q12.
  
• Positive comp guidance by 4Q12 reaffirmed.
  
• Wal-Mart continued to find areas to manage expenses lower, so if comps do reach positive in 4Q12 there stands to be nice leverage

For more ratings news on Wal-Mart click here and for the rating history of Wal-Mart click here.

Shares of Wal-Mart closed at $49.98 yesterday.

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