Despite the much-reported "Death of Retail," stock in Walmart has been on something of a little tear over the last year.
In fact, while Amazon has put the biblical "Fear of Bezos" into the rest of the retail sector, WMT has put on about $30 in new weight. The run was been a low-key surprise for many, and as a result Walmart has become the most unlikely thing that Walmart can be; a sexy pick.
The whole affair has also given rise to a fun little parlor game of watching finance types on the coasts misread the potency of Walmart. Bentonville has beaten Wall Street consensus estimates the last four quarters. But nothing can last forever, and now one clarion voice is rising above to yell "last call" on the WMT surge...
[Goldman Sachs]on Monday lowered its rating for Wal-Mart shares to neutral from buy, citing valuation.
In a note to clients, analyst Matthew Fassler wrote that Goldman downgraded Wal-Mart because of the company's "progress in growing earnings while investing in its business has been recognized by the market, as the stock's multiple has surged."
That's right, folks, the most relatable of banks is using its deep understanding of Walmart to say that Walmart is getting a little full of itself.
Forgive us if we don't take action on this downgrade until there's a Walmart built within New York City limits and DJ D-Sol signs on to spin deep EDM tracks at the ribbon cutting.