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[$$] 4 Outperforms: Walmart, Broadcom, Delta Air Lines, HD Supply

Walmart • WMT-NYSE Outperform • Price $84.62 on June 5 by Cowen Equity Research We expect Walmart to continue to leverage its physical and labor assets to drive a competitive digital advantage. At the same time, we caution that gross-margin upside remains limited, given an environment in which investment dollars will be needed to gain and cement market share. Further, we believe EPS guidance of $4.75 to $5, excluding dilution from Flipkart [the Indian e-commerce firm Walmart is in the process of buying] is achievable—although if the acquisition closes at the end of second-quarter 2019, it will face a 25- to 30-cent headwind in fiscal 2019 and a 60-cent headwind in fiscal 2020.