Gilford Securities Reiterates Buy Rating on Walmart (WMT)

Gilford Securities is out with a research report this afternoon, where it reiterates its Buy rating on Walmart WMT; it has price target range of $65.00-$70.00. The GS analysts said that the stock could see EPS growth and margin expansion lift shares due to the following reasons: 1. “A new long uptrend may begin as soon as Nov. 168h if 3Q/10 EPS met expectations and US sales improved, especially in October.” 2. US Walmart will become multi-tier, expanding with supercenters, Neighborhood Markets and a new bodega-type format suitable for metro and rural areas. 3. Walmart aims to become the largest global multi-channel retailer by linking e-commerce with 8,650 pickup points at Walmart stores around the world, Fedex stores in the US and similar pick-up points in other countries. 4. A three-year remodeling marathon in the US to keep supercenters looking fresh was also intended to prepare them to cater to middle-income shoppers. 5. Sam Walton's culture of EDLP and broad assortments with attention to opening price points is again the driving ethos in the US. This is good news for investors. 6. Harm caused by dropping low price points is being corrected and sales should respond favorably in 4Q/10, we assume. Walmart is hiring more seasonal part-timers than a year ago, expecting a favorable holiday season.”