Wall Street’s Top Analysts Upgrades, Downgrades & Initiations
$AMZN, $TGT, $WMT
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.
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.