Wal-Mart shares could hit US$85 to US$90 within 2 years: Barron's

[NEW YORK] Wal-Mart Stores Inc has been struggling, but earnings could rise in fiscal 2018 by mid-single digits, lifting the shares to US$85 to US$90 within two years, weekly investment newspaper Barron's reported in its Feb 29 edition.

Wal-Mart is trying to spark growth by spending almost US$5 billion to increase employee pay, improve the customer's experience in stores and bolster its electronic commerce.

Robert Burnstine, president of Fairpointe Capital in Chicago, told Barron's that much of the negative news is already priced into the stock and said he expects the shares to trade to US$85 to US$90 in the next two years. Connor Browne, of Thornburg Value fund, told Barron's he sees US$90 in several years.

Wal-Mart shares closed on Friday at US$66.51 on the New York Stock Exchange.

REUTERS