Goldman Sachs Ups PT To $60 On WMT

Goldman Sachs is raising its price target from $59 to $60 on Wal-Mart Stores WMT following the company's 1Q2011 results. In the report, Goldman Sachs writes, “WMT reported double-digit 1Q EPS growth that exceeded both management guidance and consensus estimates. However, the inability to deliver positive domestic comps took center stage. Conversely, SSS at Sam's Club continued to outperform in part due to its higher end demographic. With payroll growth and wages at the low end barely positive, we remain concerned that WMT's customer will be unable to absorb mounting food and apparel inflation going forward. Importantly, this could leave WMT stuck between gross margin erosion and further top- line weakness.” Goldman Sachs maintains its Neutral rating on the stock. WMT closed yesterday at $55.54.