Merrill Lynch Downgrades Wal-Mart Shares to ‘Sell?
by September 10, 2007 12:00 am 79 views
Merrill Lynch analyst Virginia Genereux cut her rating on Wal-Mart Stores Inc. of Bentonville from “neutral” to “sell” on Aug. 30 due to concerns that profit margins are eroding at its stores in the United States.
In her report, Genereux said she anticipates margin erosion in the company’s U.S. division is set to continue, and may even increase, due to years of weakening same-store sales and poor expense management.
Wal-Mart shares fell nearly 2 percent in trading Aug. 30 to $43.37 and are down 8 percent in the last three months.