Citigroup Reiterates Buy Rating on Wal-Mart Stores (WMT)

Citigroup is out with a research report this morning, where it reiterates its Buy rating on Wal-Mart Stores Inc. WMT; it has a $64.00 price target on the stock. The Citi analysts cited a recent meeting with company management, where management seemed intensely focused on fixing the mistakes made in the U.S. over the past two quarters by adding inventory back to the assortment, reinstating Action Alley, and returning to an EDLP pricing strategy. While the company’s back half 2010 outlook is cautious, the analysts believe that correcting the company-specific issues at Wal-Mart U.S. should yield topline improvement in the second half and management's emphasis on the productivity loop gives us confidence that WMT can make their 2010 EPS estimate of $4.06. The Citi analysts also noted the WMT should repurchased roughly $10 billion in stock during 2010. With the stock price at current levels, they believe that excess cash can, should and will be devoted to share repurchases.