Retail superpower Wal-Mart Stores, Inc. (WMT) late Friday received some continued bullish commentary from analysts at Jefferies & Co.
The firm reiterated its “Buy” rating and $88 price target, which suggests a 29% upside to the stock’s Friday closing price of $68.03.
A Jefferies analysts commented, “This was hardly a perfect quarter, but we think the pullback provides opportunity to buy shares in front of a holiday season that we think WMT is positioned well to win.” Continuing, “Management is executing well on the productivity loop, successfully reinvesting SG&A savings into price, which in turn is helping to drive sales and EBIT margins that are flat to up. This strategy has resulted in share gains across multiple markets and should continue to work.” Read more about WMT’s latest earnings report.
Wal-Mart shares rose 55 cents, or +0.8%, in premarket trading Monday. The stock is up about 14% since the beginning of 2012.
The Bottom Line
Shares of Wal-Mart Stores (WMT) have a 2.34% dividend yield, based on Friday’s closing stock price of $68.03. The stock has technical support in the $62-$65 price area. If the shares can firm up, we see overhead resistance around the $72-$75 price levels.
Wal-Mart Stores, Inc. (WMT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.