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Deutsche Bank Slaps a “Sell” Rating on Wal-Mart; Market Share Shrinking (WMT)

Retail superpower Wal-Mart Stores, Inc. ( WMT ) on Thursday caught some very negative sentiment from analysts at Deutsche Bank.

The firm initiated coverage on WMT with a "Sell" rating and a $48 price target, suggesting an 8% downside to the stock's Wednesday closing price of $52.20.

Deutsche Bank noted the company is losing market share "at a faster pace than at any point in its history - a phenomenon that we're not convinced the company can fix." The analyst also pointed to declining same-store sales, lack of small-store strategy, and less share buybacks for the negative call.

Wal-Mart shares were mostly flat in premarket trading Thursday.

The Bottom Line

Shares of Wal-Mart Stores ( WMT ) have a 2.80% dividend yield, based on last night's closing stock price of $52.20. The stock has technical support in the $48-$49 price area. If the shares can firm up, we see overhead resistance around the $54-$55 price levels.

Wal-Mart Stores, Inc. ( WMT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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