Wal-Mart Message Board - Msg: 1961904

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Non-Tech : Wal-Mart

WMT 102.49

-0.1%

3:59 PM EST

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To: Jack L. Dlugach who wrote (241)	8/13/1997 11:05:00 AM
From: Ken Turetzky	of 1166

MORGAN STANLEY DEAN WITTER NEW YORK MORNING MEETING PREVIEW 08/13/97 Preview for Wednesday, 8/13/97: Wal-Mart (WMT) ($37): OUTPERFORM Bruce M. Missett (212) 761-6660 - Robust 2Q results support our Outperform rating and $43 price target on WMT, in our opinion. Wal-Mart reported a 13% earnings gain, demonstrating the benefit of solid consumer demand and improved asset management. We believe the momentum exhibited in this quarter is likely to continue into the second half of the year, adding support to our rating and price target. - Our price target assumes WMT shares can sustain their current multiple of 22-23 times 12-month forward earnings. At $43, the shares would be trading at about 25 times our new 1998 EPS estimate of $1.74, a 30% premium to the market and 1.9 times our five-year growth-rate projection of 13%. - We continue to believe that WMT is awarded a premium to the market and its growth rate due to several factors, including what we see as its unassailable position in the discount-store sector, the increasing benefits of balance sheet and financial management (with inventory reduction at the top of the list), and a reestablishment of consistent quarterly performance.

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