UBS Cuts Price Target on Wal-mart (WMT) to $75 Following 2Q16

UBS maintained a Neutral rating on Wal-Mart (NYSE: WMT), and cut the price target to $75.00 (from $80.00) Wal-mart (NYSE: WMT), following the company's 2Q16 earnings results. The company reported its 2nd strongest quarter of traffic growth since 3Q10. WMT reported EPS of $1.08, missing consensus by 4c. Revenue was reported at $120.2B, beating consensus' estimate of $119.8B.

Analyst Michael Lasser commented, "While WMT's 2Q demonstrated it can achieve some traffic growth in its core US stores, it also showed that this outcome comes at a heavy cost, at least for now. The co. reported its 2nd strongest quarter of traffic growth since 3Q'10 (at 1.3%) w. the help of its recent labor initiatives and continued macro gains from lower fuel prices & an improving economy. However, it's unclear if it can sustain this momentum once it begins to lap these tailwinds in 2H. What's more apparent is mgmt has shown it's willing to invest what it needs to in order to generate sales. Though, this investment cycle is probably going to be protracted and weigh on WMT's earnings for the NT."

For an analyst ratings summary and ratings history on Wal-Mart click here. For more ratings news on Wal-Mart click here.

Shares of Wal-Mart closed at $69.48 yesterday.

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