Sanford Bernstein Research upgrades Wal-Mart Stores (WMT ) to outperform from market perform.
Analyst Emme Kozloff says the upgrade is on the potential bankruptcy of Kmart. She says that store closings from Kmart's restructuring offers Wal-Mart market share potential, a less price competitive environment than in the last six months. Kozloff says that this will give Wal-Mart opportunity to take market share above and beyond what she expected. She notes that the last six months have been about Kmart taking on Wal-Mart with its "blue light always" program. She raises here $1.72 2002 EPS estimate to $1.75. She sees opportunity to drive Wal-Mart stock out of its rigid trading range. The analyst sets a $65 target.