Analysts debate whether wal-mart boom will continue

Cnbc

Analysts debate whether wal-mart boom will continue"


Play all audios:

Loading...

AP Fifty years after Wal-Mart Stores opened its first retail location, its shares hit a new all-time high on Monday. Despite this jump, two analysts were divided over whether the stock still


had room to rise. In an interview with CNBC’s “Squawk on the Street,” Robert Carroll, a retail analyst at UBS, said the stock was close to fairly valued. Carroll has a “neutral” rating,


with a $69 price target for the stock. Carroll added that consumers are viewing the company differently than they have in years past, when same-store sales were negative. “It’s really been


that turn and their return to the core competency on price that leaves them well situated, but we just think right now it is still fairly valued until it can get a next leg of growth coming


on top of that from either an uptick in square footage growth or even further expansion of some of the smaller format stores that they’ve been exploring,” he said. Although Deborah Weinswig,


a retail analyst at Citi, characterized last quarter as a “perfect environment for spending” due to warm weather, many retailers spent heavily on technology, which impacted their bottom


line. This led to disappointment among analysts. Weinswig has a “buy” rating on the shares, with a $78 price target. She forecast that Wal-Mart would post better second-quarter earnings as


it concentrates more on hard-line items, sporting goods, and apparel. “We’ve seen improvement in both traffic and ticket, but I think what we’ll start to see in the second quarter is really


margins play out for them, and they’ve had this big focus on investing back in price and so I think we’ll see the second quarter will really be an inflection point for them and should play


out in the stock price, and it’s the reason we raised our price target to $78,” she said on “Squawk on the Street.” _—BY CNBC.com’s Katie Little_ Additional News: Wal-Mart Stores Turns 50


Additional Views: Bye-Bye, Best Buy? ______________________________ _CNBC DATA PAGES:_ * Dow 30 Stocks—In Real Time * Oil, Gold, Natural Gas Prices Now * Where’s the US Dollar Today? * Track


Treasury Prices Here ______________________________ _DISCLOSURES:_ UBS Securities makes a market in the securities and/or ADRs of Wal-Mart Stores. Citi has an investment banking


relationship with the company. Disclaimer ______________________________ _FOLLOW KATIE LITTLE ON TWITTER @KATIE_LITTLE._


Trending News

Prince philip forced to step down from dream role because of the queen

Prince Philip and the Queen's marriage has been praised as the embodiment of unity and duty throughout the pair...

Christine lampard cuts a stylish figure in black winter coat

By AMELIA WYNNE FOR MAILONLINE Published: 09:59 EDT, 19 October 2020 | Updated: 12:19 EDT, 19 October 2020 She rarely pu...

Page Not Found

Page Not Found The content that you're looking for is unavailable. You might find what you are looking for by using the ...

The receptor S1P1 overrides regulatory T cell–mediated immune suppression through Akt-mTOR

Regulatory T cells (Treg cells) are critically involved in maintaining immunological tolerance, but this potent suppress...

Strictly come dancing star ‘ruled out’ of 2020 series after injury

Matilda Ramsay, 18, is the daughter of the professional chef and television personality Gordon Ramsay, 53, who has gaine...

Latests News

Analysts debate whether wal-mart boom will continue

AP Fifty years after Wal-Mart Stores opened its first retail location, its shares hit a new all-time high on Monday. Des...

In Brief | Nature

Access through your institution Buy or subscribe This is a preview of subscription content, access via your institution ...

Here's how the cast of 'fukrey returns' prepared for their roles

Kim Kardashian Confronts Past Trauma: Tearful Testimony On Paris Robbery Shocks Court Kim Kardashian broke down in a Par...

Scheming corbyn rebels plot to oust labour leader's ally as moderates

Steve Rotheram, who is Mr Corbyn's parliamentary aide, could be forced to step down from the party's national ...

Food prices to soar as farmers struggle with costs of feed

Some food items are expected to leap 50 percent (Image: Reuters) The price of milk is set to leap 50 percent, while a pa...

Top