Goldman Raises Wal-Mart (WMT) To ‘Buy’; Citi Says ‘Hold’

Based on the details put forward by Wal-Mart (NYSE: WMT) related to restructuring, Goldman Sachs has raised its rating to ‘Buy’ with a target price of $60, while Citi has a different opinion.

GS Analyst Adrianne Shapira believes the restructuring move will help the company get better prices and improve margins while inflation will help boost sales.

However, Citigroup’s Deborah Weinswig is concerned over the valuation multiples that Wal-Mart can command with increasing foray into food items. Other causes of concern are the costs related to information technology and card-check legislation’s potential to hit Wal-Mart with union organization, based on which Citigroup has maintained its ‘Hold’ rating on the stock with a target price of $53.