Wal-Mart to Win Food Fight: Analyst
NEW YORK (
) --
Wal-Mart
(WMT) - Get Report
received a boost from an analyst as it raises the bar in food retail.
The retail giant was raised to buy from hold by Citigroup on Sunday. The firm also upped its price target to $65 from $54.
Analyst Deborah Weinswig said Wal-Mart "is lacing up the gloves to fight to win the modern-day price war in food retail in 2010."
Weinswig has remained on the sidelines with food retailers, even though food inflation is on the horizon, in anticipation of Wal-Mart getting more aggressive on price.
The discounter has significantly increased its rollbacks and says its share of the food sector could grow to 21.6% in 2010. Weinswig estimates it currently has a 20.5% share. Over the long term, Wal-Mart expects to hold one third of the market.
On the apparel side, Wal-Mart has hired a new team to revamp the business, Weinswig wrote in a note.
Shares of Wal-Mart are gaining 1.9% to $54.93 in morning trading.
-- Reported by Jeanine Poggi in New York.
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