UPDATE: KeyBanc Downgrades Walmart (WMT) to Sector Weight

KeyBanc analyst Edward Yruma downgraded Walmart (NYSE: WMT) from Overweight to Sector Weight.

The analyst comments "Since our initiation, WMT has undergone a transformation into arguably one of the strongest omnichannel U.S. retailers. However, we believe that the lack of stimulus tailwinds and continued inflationary pressure may disproportionately impact WMT’s “middle of the middle” U.S. consumer near term. WMT is also the largest private U.S. employer (2.3M+ employees), and we think wage pressure will continue to intensify. We stay Overweight TGT given its lower penetration of food (20% vs. WMT at 56%) and its higher-income consumer base. We remain positive on both long term as we think they will be continued share gains, but tactically we prefer TGT for 2022."

For an analyst ratings summary and ratings history on Walmart click here. For more ratings news on Walmart click here.

Shares of Walmart closed at $143.94 yesterday.

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