Goldman Gloomy on Wal-Mart

A Wall Street analyst cast a vote of impatience with Wal-Mart (WMT Quote) on Monday after soft sales over the holiday season sowed doubts about the discount retailing giant's strategy.

Goldman Sachs analyst Adrianne Shapira downgraded shares of the world's largest retailer to neutral from buy and lowered her one-year price target on the stock to $51 from $53. She also brought down earnings expectations for 2007, saying that continued top-line weakness is evidence that Wal-Mart's efforts to rejuvenate its business aren't paying off.

"We expect 2007 to be at best another transition year -- at worst a year characterized by further missteps and strategy shifts," Shapira said in a research note. "Despite over 1,300 remodels, merchandise overhauls and aggressive promotions, sales have become increasingly pressured." ...