Thinking about investing in retail? Take a look at Wal-Mart Stores, analysts at Jefferies said Monday.
The firm upgraded Wal-Mart‘s stock to buy from hold and raised its price target to $82 from $60, saying “we believe WMT’s store investments are yielding broadly improved store conditions and Q1 sales results seem to confirm this.”
“We think this improvement will be longer lasting and should lead to upside in sales and an upward EPS revision cycle. We think there are a few things that could move shares higher and improving US store sales momentum is the biggest and most impactful to the bottom line,” Jefferies’ note to clients said.
Wal-Mart shares advanced 1 percent in the premarket, trading near $71.69.
Jefferies also laid out its top 10 reasons for owning the stock, including better-than-average improvements in wages for low-income households, improved inventory management and higher confidence in improved execution.
Entering Monday’s trading session, Wal-Mart’s stock had gained more than 15 percent in 2016 and about 6 percent over the past three months.
WMT year-to-date chartSource: FactSet