Walmart Inc
The Walmart Analysts: In a note on June 7, Oppenheimer maintained Walmart with an Outperform rating and raised the price target from $69 to $75. In a note on Monday, Bank of America maintained its Buy rating with a price target of $75. Telsey Advisory Group analysts maintained its Buy rating and increased its price target to $75.
Oppenheimer Takeaways: Oppenheimer analysts are encouraged by the company's foray into privately labeled goods with "bettergoods," the proliferation of AI walkout technology in Sam's Club locations, and future e-commerce profitability.
"We continue to play for a multi-year profit boom driven, in our view, by strong management execution, momentum inWMT's core geographies, and further scaling of higher-margin alternative revenue streams (media, membership, marketplace, etc.)," the report said. "From here, we expect beat-and-raises to continue and believe WMT's premium valuation can hold."
Bank of America Takeaways: Bank of America analysts are also optimistic about Walmart's e-commerce profitability.
"Store remodels, online SKU expansion and express delivery (3 hours or less) are driving broad-based strength and WMT+ participation (even with lower incomes). Delivery is now larger than pickup and store-fulfilled ecom (now over 1/2 of WMT ecom) is seeing the strongest growth," the report said.
Bank of America analysts similarly noted "bettergoods" as a step in the right direction for Walmart as "the largest private brand food launch in 20 years." The note highlighted the strong customer response to the products.
TAG Takeaways: Telsey analysts highlighted increasing e-commerce profitability and "bettergoods," but also spoke more broadly.
"We believe Walmart is well-positioned to gain market share across all income groups-regardless of the environment-given its focus on value, flexibility,and convenience," the note said. "The expansion of quality merchandise, including premium and private brands, as well as convenience via Walmart+ membership and digital/marketplace, should help gain and retain share among higher income households."
The analysts also pointed out the international market, particularly India and China, as promising as a future growth driver.
WMT Price Action: Walmart traded at $66.70, up 1.2% at the time of writing.