Goldman Sachs Boots Wal-Mart Off Conviction Buy List (WMT)

Wal-Mart Stores Inc. (NYSE: WMT) is acting like a broken stock, and this morning’s big downgrade is not helping matters at the world’s largest retailer.  Goldman Sachs has removed the stock from its Conviction Buy List and took its “Buy” rating down to a “Neutral” rating.  Goldman Sachs is also taking its old $58 price target down to $56.

What is interesting here is that Goldman Sachs is noting that it is starting to prefer less-defensive retailers.  It also sees near-term expense pressures and some difficult comparable sales now that it has dropped its policy of giving guidance and other issues continuing to affect the stock.   While Goldman Sachs does still see upside, it just doesn’t see much in the form, of any near-term catalysts to buy the stock.

Shares are trading down about 1.5% at $49.10 in early pre-market trading, and the 52-week trading range is $46.25 to $63.85.

JON C. OGG
JUNE 15, 2009