), while lowering the price target from $82 to $80. The recent shareholder meeting held by Wal-Mart indicated that the management continues to be focused in the medium term on investments and change. "While sales are in respectable shape, flow through to the bottom line is not there and we do not expect to see meaningful improvement until mid 2016. ExFX, EPS growth will likely be muted for the next several quarters," Gutman stated. Although the stock valuation is not demanding at present, the risk/reward profile does not make the stock attractive. "We would be more willing to look around the corner of investments if we thought comps could accelerate further. However, we do not anticipate incremental strengthening," the Morgan Stanley report said. The analyst explained, however, that the projections were mostly based on macro aspects and did not take into account operating enhancements being undertaken by Wal-Mart at the store level. "[W]e applaud the investments and approach the company is taking under President & CEO Doug Mcmillon. Rather than soft peddle through change, the company is making deep investments today in an effort to drive sustainable growth and reposition WMT as a global omni-channel winner," Gutman added. The analyst believes that steps being taken by the company, such as developing a stronger infrastructure, simplifying the organizational chart and empowering associates, would lead to the business being re-energized. One of the key investment areas, increased wages, has already led to a positive impact on employee morale. "WMT US CEO Greg Foran is bringing a fresh set of eyes to existing store processes via better in-stocks, cleaner stores, improved space allocation, lower sight lines, and a more vibrant, bright atmosphere. These efforts should create a better in-store experience by the time the all important holiday period rolls around," according to the Morgan Stanley report. The company is also ramping training programs for its associates. In addition, Wal-Mart intends to invest in its digital efforts this year, on a larger scale than last year.