Shares of Walmart  (WMT) - Get Report slid Wednesday after a downgrade by an analyst worried about margin pressures on the world's largest brick-and-mortar retailer.

The retail giant's stock price dropped 2.99% to $124.17 after a Gordon Haskett analyst trimmed his rating on Walmart to accumulate from buy.

Even so, Gordon Haskett's Chuck Grom hiked his price target on Walmart to $140 a share, up from $130 previously, betting the stock still has some room to run.

That represents a 12.7% premium over its current trading price.

The Gordon Haskett analyst wrote he is still bullish overall on Walmart, and believes the coronavirus crisis has bolstered the retail behemoth's business model, according to a report in TheFly.

But investors may be getting ahead of themselves as they bid up Walmart, with the Gordon Haskett analyst arguing that the current price levels of the retailer's stock price are "getting a bit stretched."

In particular, Walmart is likely to face increasing margin pressures due to the fallout from the epidemic, following a pattern already seen with other big retailers like Target and Costco  (COST) - Get Report, the Gordon Haskett analyst wrote.

Target  (TGT) - Get Report last week provided a business update that has been seen as a potential warning for Walmart and other big box retailers as well.

Target warned that first-quarter profit margins are likely to drop even as consumers increasingly rely on the retailer and its competitors for groceries and other basic needs.

While sales of lower-margin grocery items have surged, Target has been also forced to write-down unsold apparel inventory and boost pay and benefits for workers amid the coronavirus crisis.

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