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.
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