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Credit Suisse First Boston




from its focus list late yesterday, but kept the retailer at a buy rating.

In a research note, Credit Suisse said it removed Wal-Mart from the list for a number of reasons, including its capital spending outlook, limited near-term upside for the stock, and a shift toward financially and operationally leveraged companies in the market.

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The focus list represents the firm's recommendations of companies expected to outperform the market over the next six to 12 months. The list is based on a number of factors, including long-term potential, appropriate macroeconomic exposure, and undervaluation.

Credit Suisse said since Wal-Mart was added to the list in May, its earnings expectations have come down and its near-term upside is limited, but the stock has continued to do well.

"The market for retail equities now appears to have shifted its focus to companies that are the most financially and operationally leveraged," the company wrote in a research note. "This means that Wal-Mart, even in its dominant position, is relatively less interesting to investors as it does not possess nearly the same degree of financial and operating leverage as that of other companies."

Shares of Wal-Mart, which is based in Bentonville, Ark., fell 90 cents, or 1.7%, to $52.94 in recent

New York Stock Exchange