Morgan Stanley Maintains "Overweight" Ratings on Four Major U.S. Retail Stocks: This Quarter's Earnings Unlikely to Settle Bulls vs. Bears, "Flat" Performance May Offer Good Investment Opportunities

According to information from Zhitong Finance APP, on November 9, Morgan Stanley released a preview of the Q3 earnings reports for major US retail stocks, maintaining an "Overweight" rating on Walmart (WMT.US), Home Depot (HD.US), Lowe's (LOW.US), and Target (TGT.US), with target prices of $125, $400, $258, and $170, respectively. Morgan Stanley believes that this quarter’s earnings reports are unlikely to substantively change the investment logic for each company—Walmart’s performance is expected to be in line with expectations, Home Depot and Lowe’s are still hampered by the lack of demand recovery, and Target is the only company that might deliver a “surprise” result. However, the report highlights that when the market’s attention is fully focused on AI and intelligent e-commerce, the “lack of excitement” in retail stocks may itself be the starting point for a contrarian strategy.