Happy Customers Lead to Positive Results for Wal-mart (WMT); Cowen Reiterates Market Perform
Cowen reiterated a Market Perform rating and $66.00 price target on Wal-Mart (NYSE: WMT) following the company's 3Q earnings report. WMT US's 3Q comp of +1.5% was led by positive traffic of +1.7% as investments in higher wages, more training, and incremental department managers are driving steady improvement in the shopping experience.
Analyst Oliver Chen commented, "Happier Customers at WMT Confirm Cowen’s National Surveys. Cleaner stores, upgraded staffing, bricks + clicks e-comm, and healthy US consumer backdrop should drive solid holiday demand at WMT. We are on the sidelines with a Market Perform as we look for catalysts for a combination of comp & gross margin upside given SG&A investments (wages, e-com) in FY17. Reit. Market Perform & $66 PT."
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Shares of Wal-Mart closed at $57.87 yesterday.