NEW YORK ( TheStreet) -- Wal-Mart (WMT - Get Report) was upgraded to buy from hold by a Stifel Nicolaus retail analyst, who said the discounter could see more cooperation in building stores in big cities.
Analyst David Schick said in a note that state and local governments might be willing to approve the opening of more urban stores in an effort to spur job growth.
Consumers are also still trying to spend less on basics, benefitting Wal-Mart, Schick wrote.
Schick said his Wal-Mart Amalgamated Leading Economic Index, an index of eight economic indicators that relate to Wal-Mart's stock price, showed its largest one-month swing in 10 years. This means the discounter has a better chance of outperforming going forward, according to Schick.Last week, Wal-Mart was upgraded by Goldman Sachs, after it announced plans to reorganize its business. Wal-Mart is consolidating some of its U.S. operations in an effort to increase efficiency. The company will combine its realty, store operations and logistics divisions, and it will reorganize operations into three geographic regions, each led by its own president. The company is also creating a new division called Global.com to oversee its e-commerce business. Earlier in the month the company revealed plans to lay off 11,200 Sam's Club employees and shutter 10 of the underperforming warehouse clubs. -- Reported by Jeanine Poggi in New York.
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