Wal-Mart receives 'buy' rating from J.P. Morgan

Staff -- Home Textiles Today, 10/1/2001 12:00:00 AM

BENTONVILLE, AR —

Wal-Mart, the world's largest retailer, got a lift last week when Wall Street powerhouse J.P. Morgan Chase raised its rating on the company's stock to "buy" from an earlier "long-term buy."

Retail analyst Shari Eberts commented, "Valuation stock looks full, but we believe it will be sustainable in the next several quarters, as Wal-Mart's fundamentals far outpace its peers, given its less discretionary product mix, which should keep sales trends relatively strong."

Less bullish on the department-store channel, Eberts at the same time downgraded Federated Department Stores to "market performer" from a previous "buy."

"We are adjusting our ratings to reflect a changed world, where sales and earnings risk has escalated, especially for those companies whose goods are more discretionary."