UPDATE: R5 Capital Downgrades Walmart (WMT) to Hold on Muted Sales Outlook for Next Twelve Months
R5 Capital analyst Scott Mushkin downgraded Walmart (NYSE: WMT) from Buy to Hold, PT $147.00 (from $147.50).
The analyst comments "Our research points to slowing sales likely due to the reduction in unemployment benefits, which we believe is likely to continue as our forecast calls for personal disposable income to contract through at least 2Q of next year. Walmart’s core customer is being particularly impacted by the current economic climate. We would also note that valuation is elevated when compared to historical norms, and we are a bit cautious regarding the company’s efforts to purchase TikTok given its track record on large M&A transactions over the last few years."
Shares of Walmart closed at $135.00 yesterday.