Wal-Mart +2% as upgrade cites retail "dominance," "new prowess" in digital

|By:, SA News Editor

Wal-Mart (NYSE:WMT) enjoyed a 2% gain in today's trade after Telsey Advisory Group upgraded shares to Outperform from Market Perform with an $82 price target, raised from $73, on the view that WMT is regaining its dominance in physical retail and exerting new prowess in digital commerce, as evidenced by improved sales growth in the past few quarters.

WMT's "increased focus on food and e-commerce, price investments and the customer experience point to a winning formula to gain market share and transform the business model for growth in a digital world," Telsey writes.

The firm listed four core reasons for its upgrade: multi-year investment in e-commerce is paying off, increased focus on grocery and private brands, price investment continues, and the productivity loop is regaining traction.