Goldman Sachs Comments On Wal-Mart Following Analyst Meetings

With $4-4.5 bn of Wal-Mart's WMT $13 bn annual capex budget dedicated to its International division, the company is focused on growing its $109 bn in international sales across 4,573 units in 14 countries. While no specifics were shared, Asia accounted for 15% of 2010's international growth and should grow to represent 35% in 2016. WMT's stock in the near term hinges on the company's ability to deliver a positive US comp. While management hopes to impress the market with its international plans, the market must feel confident that Wal-Mart's domestic dominance remains strong. If WMT's format is losing ground at home, the market will have a challenging time giving the company credit for succeeding in markets about which it knows less. Therefore, while WMT's will to succeed internationally is clear, the market remains focused on its ability to demonstrate that it remains relevant domestically. Goldman Sachs has a $59 PT and Neutral rating on WMT WMT closed Monday at $52.65