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'Well-Positioned' Walmart Added To Goldman's Conviction List

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'Well-Positioned' Walmart Added To Goldman's Conviction List
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As retailers continue to feel threatened by Amazon.com, Inc. (NASDAQ: AMZN), Goldman Sachs analyst Matthew Fassler still sees Wal-Mart Stores Inc (NYSE: WMT) as “well-positioned.”

“We believe that the company is as well positioned as any mass market retailer — in an admittedly imperfect world for mass market retailers — to cope with increasing demands on ecommerce and technology spend, weather Amazon’s growth and its increased focus on consumables, and maintain its franchise. We see merits in Walmart’s front-loaded investment, scale, capacity for additional investment, small-market focus, and current impressive inventory discipline,” he wrote.

Fassler upgraded Walmart to Buy with an $84 price target and added it to Goldman’s Conviction List.

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5 Reasons Why Fassler Is Bullish On Walmart

  • He likes Walmart’s small market focus and believes it puts the company at less risk to competition in the grocery space.
  • Walmart’s investment in technology and e-commerce as well as the company’s plans to emerge as a leader in the 3-P marketplace.
  • Strong working capital management.
  • Inflation in food has bottomed out.
  • Walmart has a relatively low P/E ratio.

Walmart shares were trading up 1.55 percent, at $76.21 during Friday’s trading session. To read the latest news and exclusive coverage on Walmart check out the Benzinga Pro news feed.


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Image Credit: By Walmart Corporate from Bentonville, USA (Walmart store exterior) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commonstipranks.png

Latest Ratings for WMT

DateFirmActionFromTo
Jul 2017Goldman SachsUpgradesNeutralBuy
May 2017BMO CapitalUpgradesUnderperformMarket Perform
May 2017Gordon HaskettInitiates Coverage OnBuy

View More Analyst Ratings for WMT
View the Latest Analyst Ratings

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