retail news in context, analysis with attitude

Business Insider reports on how Citi research analyst has sent a note to her investor clients saying that “it has grossly underestimated Walmart this year,” and upgraded the retailer’s rating from “neutral” to “buy.”

"Walmart's e-commerce operations are emerging as a true challenger to Amazon," Kate McShane wrote in her note, adding, “We sat on the sideline with this name in '17, which proved to be a big mistake. Despite the stock's run-up, we think there is even more to come, particularly considering Home Depot and Costco a re trading at a premium to Walmart.”

The story says that McShane identified Walmart’s strengths as “its grocery offering, everyday-low-price positioning, and ‘increasingly-seamless integration’ of its stores and website, saying all three would ensure strong traffic to stores.”
KC's View: