Credit Suisse recommends Walmart to investors and here’s why
2022.12.20 07:34
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Credit Suisse recommends Walmart to investors and here’s why
Budrigannews.com – With a Neutral rating, Credit Suisse analysts have begun research coverage of the Food Retail and Hardline/Broadline Retail sectors. The decent view on these two areas is additionally reflected in the inclusion of single stocks with just Walmart (NYSE:) likewise Tractor Supply achieving a rating of Outperform.
Walmart stock has a price target of $170 per share, implying a nearly 20% upside potential. The analysts gave six main reasons why they think Walmart will continue to outperform the market.
- Gaining meaningful market share since early 2021;
- Well-positioned defensive name in an uncertain macro backdrop;
- Price gaps to conventional grocers remain wide;
- A potentially weak macro backdrop should accelerate share gains;
- Well-positioned to be even more offensive than usual to gain share;
- Alternative profit streams should continue to evolve and contribute to operating profits.
Home Depot (NYSE:), among other major retailers, Costco (NASDAQ:), NYSE: Lowe’s, likewise Target (NYSE:), are rated neutral. Big Lots, on the other hand (NYSE:) is the only stock with an Underperform rating.
In a client note, the analysts stated, “Our rating and target price are based on our view that BIG is at risk of significant share losses going forward and the company continuing to re-invent itself to remain relevant – but these reinventions have not proven to be successful to date.”
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