UPDATE: Stifel Nicolaus Upgrades Wal-Mart Stores to Buy on Traffic Traction

Stifel Nicolaus raised its rating on Wal-Mart Stores

from Hold to Buy with a newly-established $83 price target. Stifel Nicolaus noted, "WMT 2Q12 EPS release could be a positive catalyst for shares, in our view, due to U.S. comp store sales performance driving top- and bottom-line beat. We note: (a) Our READ Survey is showing y/y increases in consumers “shopping once a week” at WMT and y/y decreases in consumers who “don't shop at WMT” – and our store visits suggest improved basics merchandising is working; (b) lower-income consumers benefited from gas price deflation of roughly 5% during 2Q12 – adding roughly 50 bp to discretionary spending power y/y." Wal-Mart Stores closed at $74.55 on Friday.