This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wal-Mart, Raised by Goldman, Is Up

(Wal-Mart article updated with stock price and additional analyst commentary.)

NEW YORK ( TheStreet) -- Wal-Mart (WMT - Get Report)was lifted to buy on Friday by Goldman Sachs, after announcing plans to reorganize its business.

In response, shares of the company are growing 2.4% to $53.85 in morning trading.

"With the stock trading at its typical floor valuation, we see limited downside risk in the shares," the brokerage firm wrote. "With expectations seemingly muted, we believe the bar is low for Wal-Mart , and any upside to consensus should lift shares and likely generate a return to normalized valuation levels."

Goldman Sachs also upped its price target on the stock to $60 from $58.

But Citigroup is maintaining its hold rating on the stock and $53 target price.

On Thursday, Wal-Mart announced that it is consolidating some of its U.S. operations in an effort to increase efficiency. The company will combine its U.S. realty, store operations and logistics divisions and reorganizing operations under three geographic business that will each be led by its own president.

It is also creating a new division called Global.com to oversee its e-commerce business.

The restructuring will result in a fourth-quarter charge of 4 cents a share.

Wal-Mart also signed a sourcing deal with merchandise provider Li & Fung. Through the deal Wal-Mart could purchase $2 billion in goods through the firm in the first year. This is expected to help Wal-Mart consolidate some of its sourcing.

Last week, the discounter said it would lay off 11,200 employees from its Sam's Club stores, and shutter 10 of the underperforming warehouse clubs.

-- Reported by Jeanine Poggi in New York.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
WMT $78.60 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs