NEW YORK ( TheStreet) -- Wal-Mart ( WMT) has undercut Apple's ( AAPL) pricing model selling its iPhone5c for $45, a more than 50% in savings on the original $99 price. Apple has yet to comment on the aggressive pricing strategy though TheStreet's Rocco Pendola doubts CEO Tim Cook is unaware of the issue.
Best Buy (BBY) wrapped up a weekend sale which priced the iPhone 5c at $50. Wal-Mart, however, plans to sell the model at below-price throughout the holiday season.
Jeffries' analyst Peter Misek has upgraded Apple to "buy" from "hold", raising his price target to $600 from $425. Misek believes better gross margins will support the company until the iPhone 6 launches. BMO's Keith Bachman has also raised his price target to a comparatively modest $508 from $480.
Wal-Mart shares closed 1.28% lower to $71.87, while Apple shares gained 0.98% to $487.75. The S&P 500 fell 0.85%.
TheStreet Ratings team rates Wal-Mart Stores Inc as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate Wal-Mart Stores Inc (WMT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."