Walmart:Credit Suisse initiates coverage with neutral rating

(CercleFinance.com) - Credit Suisse has initiated its coverage of the Walmart stock with a "neutral" rating and a target price of 102 dollars, citing the US retail giant's "elevated valuation".


The investment bank said its positive view on the company's competitive position is offeset by lower near-term growth as investments accelerate, coupled with the stock's high valuation.

"Our work shows how investments in price and online, and initiatives around assortment and service, have positioned Walmart to lead growth online in certain categories, drive stronger market share gains, widen its customer reach, and increase its importance to vendors," said Credit Suisse in a report.

"That said, we see a balanced risk/reward at this valuation, until relative sales and online growth reaccelerate, and visibility into operating profit dollar growth improves - two key drivers of this stock historically," it added.

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