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Fly News Breaks for January 15, 2020
Jan 15, 2020 | 10:58 EDT
After Target (TGT) reported November/December comparable store sales growth of 1.4% and lowered its Q4 sales guidance, Stifel analyst Mark Astrachan said he views the result as disappointing, especially given that Target has beaten comp expectations in recent quarters. The analyst, who noted that the company blamed the comp miss on softer than expected sales in holiday categories such as electronics, toys, and parts of its home assortment, believes there is limited read-through for broadline retailers Walmart (WMT) and Costco (COST), which get insulation from their grocery sales. He also noted that Costco has already reported a strong November/December comp increase of 6.6%, which he reads as a sign of strong share gains in light of Target's report. Astrachan, who expects Target shares to underperform following the report, has a Hold rating and $130 price target on the stock.
News For TGT;WMT;COST From the Last 2 Days
Feb 14, 2020 | 13:49 EST
Amazon (AMZN) and Walmart's (WMT) Flipkart are among e-commerce companies demanding that India curtail a proposed tax on third-party sellers on their platforms, contending that the burden of compliance will harm the industry, Reuters' Manoj Kumar and Sankalp Phartiyal report, citing a document. The online retail sector is braced for a potential 1% tax on each sale made by sellers on their platforms from April if the proposal is approved by parliament next month, the authors note. The move is part of a wider plan by Indian prime minister Narendra Modi's administration to boost tax revenues and counter a sharp economic slowdown due to weakening consumer demand, the authors note. According to a presentation by the Federation of Indian Chambers of Commerce and Industry seen by Reuters, the tax will harm India's fledgling e-commerce industry. "(It) would cause irreparable loss to the entire industry with increased compliance burden," the lobby group said on behalf of e-commerce companies. "This will also lead to reduced trading activity." Reference Link
Feb 14, 2020 | 07:11 EST
Baird analyst Peter Benedict said the shortened holiday calendar and mixed results from other retailers has lowered expectations for Walmart heading into next week's earnings report. While he said some comp risk exists,he sees good support for his earnings estimates and he believes the company's initial 2020 outlook should capture forward estimates. Benedict reiterated his Outperform rating and $130 price target on Walmart shares.