Citigroup Upgrades Wal-Mart to Buy; PT $65Citigroup upgraded Wal-Mart Stores (NYSE:WMT) to Buy from Hold and raised its price target to $65 from $54.
Analyst Deborah L Weinswig said, "WMT's negative traffic comp in 4Q09 served as an indication that WMT may be losing the customer it had gained during the recession by allowing the price gap with the supermarkets to narrow. WMT's price savings no longer outweigh the experience and convenience of shopping the supermarkets. As the economy improves, we expect WMT to fight harder to keep this customer by sig. increasing rollbacks to drive mindshare and market share."
The bank expects the company to report 2011 EPS of $4.04, versus consensus estimates of $3.98.