Wall Street Firm Admits it Underestimated Walmart
Citi Research has admitted to grossly underestimating Walmart this year.
According to piece from MarketsInsider, the Wall Street firm's analyst Kate McShane has upgraded Walmart from "neutral" to "buy" and on Monday said the firm made a "big mistake" by misjudging its competitiveness with Amazon. It raises its price target to $117 from $106.
"We sat on the sideline with this name in '17, which proved to be a big mistake. Despite the stock's run-up, we think there is even more to come, particularly considering HD and COST are trading at a premium to WMT," analyst Kate McShane wrote in a note to clients Monday, as reported in CNBC. "Our belief that its aggressive omnichannel strategy will continue to drive significant sales growth and WMT's ecommerce operations are emerging as a true challenger to Amazon, both factors that could fuel further multiple expansion."
Walmart shares were up about 1 percent Tuesday morning after the report, and according to CNBC's report, the retailer is one of the market's best-performing large-cap stocks this year, rallying 42 percent through Monday versus the S&P 500's 20 percent gain.