Cowen Raises Price Target on Wal-Mart (WMT) Following a Positive 1Q
Cowen reiterated a Market Perform rating on Wal-Mart (NYSE: WMT), and raised the price target to $70.00 (from $64.00), following the company's 1Q earnings report. Walmart posted US comps of +1.0%, above the Street's +0.5% estimate and management.'s guidance of +0.5%. Management. noted in the pre-recorded earnings call that the strong WMT US comps and positive traffic speak to the real improvement the company has made in the store experience.
Analyst Oliver Chen commented, "We're encouraged by pos. traffic, 1Q comps upside despite -60bps from food deflation, improving execution on store experience, shrink & inventory + GM strength (+60bps y/y). Work remains at e-com which grew +7%, below plan & TGT's +23%. Cowen Market Perform, but in our view WMT has defensive appeal in uncertain retail/rising rates backdrop."
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 $63.15 yesterday.