J.P. Morgan Has Thoughts On Wal-Mart Ahead Of Earnings (WMT)

J.P. Morgan Chase & Co. is Overweight on Wal-Mart Stores, Inc. WMT going into earnings. It also has a $58 price target on shares. In a note to clients, J.P. Morgan writes, "The bad news is we don't think the company had a very good quarter in the U.S. as Wal-Mart, under the direction of new U.S. CEO Bill Simon, unwinds many of the mistakes that were made in conjunction with Project Impact 12 months ago. The good news is the bar has been set low with market expectations for a Division 1 comp below 2%. Looking ahead, we would expect management to back its 4Q comp guidance of “positive” in some shape/form as well as our 4Q EPS estimate of $1.24. As for the stock, against the backdrop of easy compares, modest food inflation, and the implementation of new merchandise/operational initiatives, we're reiterating our Overweight rating, particularly with valuation compelling." Shares of WMT lost 17 cents yesterday to close at $54.34, a loss of 0.3%.