Wall Street’s Top Analysts Upgrades, Downgrades & Initiations

Wall Street’s Top Analysts Upgrades, Downgrades & Initiations

$AMZN, $TGT, $WMT

Daily HeffX-LTN reviews Wall Street analysts research reports to find new investing and trading ideas for our readers. Some reports cover stocks to buy, and others cover stocks to sell or avoid.

Below is a list of Wall Street’s Top analysts outlook for Big Retail for Monday, as follows:

Amazon.com Inc. (NASDAQ:AMZN) has threatened retailers for years now with lower priced goods at the click of a mouse, but while some retailers have fought back and built out their e-Commerce platforms, others have struggled.

From this past week, the earnings reports of Wal-Mart Stores Inc. (NYSE:WMT) and Target Corp. (NYSE:TGT) seem to tell that story.

Below are the highlights:

During this past Quarter, Walmart posted adjusted EPS (diluted earnings per share) of 1.00 on total revenues of $123.18-B, excluding membership fees in Sam’s Club. Q-3 results also compare to consensus estimates for EPS of 0.97 and $121-B in revenue. In the same frame a year ago, Walmart reported EPS of 0.98 on revenues of $118.18-B.

Q-3 same-store sales rose 2.7% for the United States, but what really stood out was that Walmart reported US e-Commerce growth of 50% and gross merchandise value totaling 54%. These totals are lower than those reported for Q’s 1 and 2, but Walmart has continued to invest heavily in e-Commerce.

 

Target (NYSE:TGT) said it had EPS of 0.91 on $16.67-B in revenues. That compared with consensus estimates for EPS of 0.86 and revenue of $16.6-B. In the same frame last year, the company reported EPS of 1.04 on revenue of $16.44-B.

Same-store sales rose 0.9% compared with Q-3 of Y 2016. Digital channel sales rose 24% and contributed 0.8 points to same-store sales growth.

In its outlook for Q-4 of Y 2017, Target said it expects same-store sales growth of flat to up 2% and full-year growth of flat to 1%. For the Quarter, the company expects adjusted EPS of 1.05 – 1.25. Analysts had forecast EPS for Q-4 at 1.24 on revenues of $21.84-B

Target is going to have to compete on price, and that is not the road to higher profits.

Amazon (NASDAQ:AMZN) has been dubbed the retailers Death Star as it stock price is up over 51% YTD.

What Key analysts said about Walmart after the report:

  • Merrill Lynch reiterated a Buy rating and raised its price target to $120 from $100.
  • Morgan Stanley maintained it at Equal Weight and raised its target to $92 from $90.
  • KeyBanc Capital Markets maintained it at Overweight and raised its target to $112 from $100.
  • Oppenheimer reiterated an Outperform rating and raised its target to $100 from $90.
  • Citigroup raised its price target from $80 to $106.
  • Independent Research raised its price target from $86 to $106.
  • JPMorgan raised its price target to $102 from $84.
  • RBC Capital Markets raised its price target to $92 from $83.
  • Stifel raised its price target to $101 from $85.
  • Susquehanna raised its price target to $115 from $99.

What Key analysts said after Target’s report:

  • Deutsche Bank cut its price target to $53 from $59.
  • Barclays cut its price target to $45 from $50.
  • Citigroup raised its price target from $56 to $58.
  • Stifel maintained a Hold rating and cut its price target to $62 from $65.
  • Susquehanna cut its price target to $54 from $58.
  • Morgan Stanley kept its Underperform rating and lowered its target to $50 from $52.
  • Telsey Advisory Group rates it at Market Perform and cut its target to $58 from $60.
  • Jefferies has a Hold rating and lowered its price target a buck to $59.

Shares of Walmart closed Friday at 97.46, with a consensus analyst price target of 94.01 and a 52-wk trading range of 65.28 – 100.13.

Amazon shares were last seen at 1,129.88. The stock has a 52-wk trading range of 736.70 – 1,139.90 and a consensus price target of 1,220.74.

Target traded at 58.13, within a 52-wk range of 48.56 – 79.33. The consensus price target is 58.62.

Have a terrific week.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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