Wal-Mart Stores "neutral," target price raised

02/20/04 - Banc of America

NEW YORK, February 20 (New Ratings) — Analysts at Banc of America Securities issue a “neutral” rating on Wal-Mart Stores, Inc (WMT), while raising their estimates for the company. The target price has been raised from $58 to $62.

Shares of Wal-Mart Stores, a leading US-based retail stores company, are currently trading at $58.32.

According to Banc of America Securities’ research note dated February 19 and published this morning, Wal-Mart Stores is poised to consolidate its market position as a leading retailer company in the world this year. The analysts mention that the company is well positioned to benefit from the improved consumer spending trends in 2004. Banc of America Securities expresses its optimism regarding Wal-Mart Stores’ improved execution of its pricing and volumes growth strategies this year.

Wal-Mart Stores’ stock is unlikely to experience a robust improvement in its share price performance in the near term, the analysts say. However, Banc of America Securities anticipates limited downside risks from the current valuation of the company’s stock in the near term.

The EPS estimate for 2004 has been raised from $2.32 to $2.37, while the EPS estimate for 2005 is $2.70. The P/E estimates for 2004 and 2005 are 24.6x and 21.6x, respectively.

Banc of America Securities issues a “neutral” rating on Wal-Mart Stores, Inc.