Walmart's productivity loop working, says Credit Suisse
Credit Suisse analyst Seth Sigman notes that Walmart's Q4 results were "strong" and provided further evidence that its efforts to enhance the store experience as well investments in omni-channel are driving stronger market share gains. The analyst expects that comps momentum will continue to dictate the near-term direction of the stock. That said, upside to EBIT still seems limited by those investments, he contends, adding that he would continue to look for progress toward enhancing the sales mix and executing on other cost offsets to support stronger profitability, in order to drive more meaningful upside to the stock over the medium/longer term. Sigman reiterates a Neutral rating and $103 price target on the shares.