A Seeking Alpha analyst downgraded Walmart (WMT) stock to "Sell." The analyst cited risks from the company's high valuation in a rising interest rate environment.
Walmart's premium price-to-earnings (P/E) multiple of 35-39x is difficult to justify. Risk-free Treasury bonds offer yields around 5%.
The analyst also noted a slowdown in the retailer's growth. U.S. comparable sales growth decelerated to 2.6% in the most recent quarter.
This contrarian rating contrasts with broader Wall Street consensus. Most analysts currently rate the stock as a "Buy" or "Strong Buy."