UPDATE: JP Morgan Downgrades Wal-Mart Stores to Neutral on Payroll Tax Increase Pressure

JP Morgan downgraded Wal-Mart Stores

from Overweight to Neutral and lowered the price target from $84.00 to $75.00. JP Morgan noted, "With the low-hanging fruit behind them and considering the company's massive size and the pressures from the payroll tax increase, we believe comps have peaked/will plateau following three straight years of acceleration (and 2%+ levels in 1H12. … Indeed, the core pillar of our Nov 11 upgrade is now behind us. Given this backdrop, and barring a fundamental change in capital allocation, we believe the stock will be challenged to outperform its long-term earnings algorithm of 8-12%." Wal-Mart Stores closed at $70.49 on Friday.