Thursday, November 18, 2010

Wal-Mart (NYSE:WMT) Earnings Estimates Raised by Jefferies

Analyst Coverage

Jefferies said they continue to like what they see with Wal-Mart (NYSE:WMT), and maintain their "Buy" rating on the company.

Earnings per share estimates were raised by Jefferies for the giant retailer by $0.01 to $4.04 for the full year 2011.

Also for the fully year 2011, Jefferies lowered it EBITDA estimates from $33.1 billion to $32.9 billion. For the full year 2012, they dropped it from $35.2 billion to $35 billion.

Jefferies said, "By Q1 of FY12 (Jan 11), we believe investors could be looking for more defensive names that have favorable valuation and have easy comparisons and Wal-Mart fits the bill."

Even in slow economic times Wal-Mart continues to generate profits and positive return on investment. Jefferies sees it being held back by lower traffic and sales.

Wal-Mart closed Wednesday at $53.77, falling $0.49, or 0.90 percent.

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