Walmart Canada confirmed with MarketWatch on Tuesday that it will not have cannabidiol, or CBD, products lining its shelves at this point. “As we would for any new industry, Walmart Canada has done some preliminary fact-finding on this issue, but we do not have plans to carry CBD products at this time,” the company said in a statement. However, shares of Walmart Inc. are up 3.1% in Tuesday trading after the retail giant was upgraded to buy from hold at Deutsche Bank based on the return on e-commerce investment and customer service. “[W]e believe the company is now in position to accelerate market share gains in grocery while also growing EBIT [earnings before interest and taxes] dollars (excluding Flipkart) and expanding ROI,” the note said. “Importantly, our view is supported by our thesis that the food retail landscape is rapidly changing due to high adoption rates of convenience/online grocery and market share is meaningfully bubbling to the top.” Analysts led by Paul Trussell say Walmart is best positioned in the long-term. Deutsche Bank raised its price target to $113 from $89. Walmart shares are down 1.1% for the year to date while the Dow Jones Industrial Average has gained 7.2% for the period.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Latest posts by Market Watch (see all)
- Cannabis Watch: How one exchange became the go-to destination for cannabis stocks - December 15, 2018
- Key Words: ‘People are underinvested,’ and they’re going to miss out, warns Wall Street vet - December 15, 2018
- Market Extra: How a choppy stock market shows ‘neither bulls nor bears’ are in charge right now - December 15, 2018