Telsey Advisory Group raised its rating for Wal-Mart shares to outperform from market perform, saying the retailer's investments in online and lower prices will drive better sales growth in the coming years.



"Walmart appears to be regaining its dominance in physical retail and exerting new prowess in digital commerce. ... The increased focus on food and e-commerce, price investments, and the customer experience point to a winning formula to gain market share and transform the business model for growth in a digital world," analyst Joseph Feldman wrote in a note to clients Friday. "Our forecast for accelerating growth following a few years of heavy investment to improve the core Walmart US and digital businesses should propel the stock higher over the next few years."