Downgrades and Upgrades: WMT
We're initiating tons of coverage this weekend.On Saturday, we went ahead and downgraded Walmart from our earlier Hold Rating to a Sell Rating.
Pre Katrina, we were a bit more bullish on Walmart.
Thanks to Katrina, the retail industry is suffering.
As a gargantuan multinational, WMT's explosive growth is behind them.
In addition, WMT is still roiling from an outsourcing/labor abuse backlash.
That's not to say the #1 retailer is a dog.
On the plus side, WMT is getting its face wet in RFID technology, tearing the China market wide open, and turning into post Katrina heros vis-a-vis their logistical prowess.
But with little to no significant earnings accelerating catalysts on Walmart's horizon, we're pulling the switch.
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