Wal-Mart Shares Tumble with the Market

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Wal-Mart Shares Tumble with the Market

10/07/2008
The days of Wal-Mart appearing unscathed amid the pressure on Wall Street in the down economy, the stock share price for the retail giant took a hit on Monday after a financial analyst warned in a note that the retailer can't dodge the financial bullet forever.

An analyst at UBS downgraded Wal-Mart's shares on Monday from Buy to Hold, predicting that the company is unlikely to remain immune to the worsening economy and increasing competition. UBS also cut its price target on Wal-Mart from $66 to $62.

The sell-off in the broad world stock market also contributed to Monday's weakness, as even the strongest names in the market felt the pressure.

Still, even with sharp global market declines as investors appeared pessimistic about the U.S. bailout, shares of Wal-Mart were not hit as hard as other major public companies, because the discounter has benefited in the deteriorating economy as consumers stick to the essentials and shop for price.