Will It Be a Holiday of Cheer for Wal-Mart?

Noting U.S. consumers are under pressure due to high food prices and the economic slowdown, analyst Murray Leith of Odlum Brown reiterated his ‘buy’ rating on Wal-Mart Stores Inc. (WMT).

“We believe the company will be one of the few retailers not to disappoint during the holiday seasons,” the analyst said in a note to clients.

Wal-Mart has been gearing up for the season with the launch of ‘Operation Main Street,’ a seven-week rollback campaign to save consumers more money over the holidays, he noted.

He said:

With the stock up 13% year to date, Wal-Mart is one of only ten companies to have a positive return for 2008 out of all of the S&P500 companies. From a share valuation perspective, Wal-Mart continues to look compelling. In fact, the price to earnings ratio is still near its lowest level in more than two decades.

His target price on the stock is $67.50.