Citi Upgrades Wal-Mart (WMT) to Buy, 'Has Room To Run'

Citi upgraded Wal-Mart (NYSE: WMT) from Neutral to Buy with a price target of $117.00 (from $106.00).

Analyst Kate McShane cites four reasons for the upgrade:

1. Our belief that its aggressive omnichannel strategy will continue to drive significant sales growth and WMT's ecommerce operations are emerging as a true challenger to Amazon, both factors that could fuel further multiple expansion,
2. WMT's grocery offerings, everyday low-price positioning and increasingly-seamless integration of store-based and digital selling will ensure consistent B&M traffic trends,
3. We see upside to consensus expectations for both sales and margins, particularly in 2H18, and
4. Our DCF-based target price of $117, which implies ~20% upside from current levels.

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 $97.90 yesterday.

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