The firm said it lowered its rating on the retail chain due to its concerns the company’s investment spending is “not yielding the results we hoped for and may not in the coming quarters either.”
The firm is also expecting Walmart to report low earnings for the second quarter as a result of “elevated expenses, and lackluster sales.”
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Jefferies cut its price target on Walmart stock to $76 from $89.
Shares of Walmart are down -0.40% to $74.37 in pre-market trade.
Separately, TheStreet Ratings team rates WAL-MART STORES INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate WAL-MART STORES INC (WMT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: