Wal-Mart Upgraded

Wal-Mart Stores (NYSE: WMT) is moving nicely higher this morning, up 1.95% to $54.95, on the heels of an upgrade from Citigroup. Citi analyst, Deborah L Weinswig, put a “Buy” rating on the stock, which is up from “Hold;” the new price target is $65, an 18.2% premium. I can see the rationale for moving back into larger cap names during this part of the rally given that many large caps have lagged the rally, but are now finding some bids.

Wal-Mart Stores is seeing some positive options action as well with the March $55 calls purchased at the open nearly 5,000 times on the bid. The volume on that line has since grown to over 14,000 contracts. Perhaps more importantly, I am also seeing the April $55 calls being purchased; over 8,000 contracts have traded on that line.