Retail superpower Wal-Mart Stores, Inc. ( WMT ) on Tuesday caught a big downgrade from analysts at Jefferies & Co.
The firm said it cut its rating on WMT from "Buy" to "Hold" and lowered its price target from $61 to $56. That new target suggests a smaller 6% upside to the stock's Monday closing price of $52.62.
A Jefferies analyst commented, "Recent market share data suggests continued challenges at Wal-Mart in Q2, which combined with our own checks, lead us to think there is downside risk to sales in Q2 and potentially over the balance of the year."
Accordingly, the firm lowered its 2012 and 2013 earnings estimates for WMT to $4.43 and $4.71, respectively.
Wal-Mart shares fell 56 cents, or -1.1%, in premarket trading Tuesday.
The Bottom Line
We made a major call on the shares earlier today. Click here to see our take on the company. The company has a 2.77% dividend yield, based on last night's closing stock price of $52.62.
Wal-Mart Stores, Inc. ( WMT ) is not a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Created by Dividend.com