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Walmart has Wall Street’s attention – and it’s pushing the retailer’s stock to an all-time high.
Shares of Walmart increased slightly to $67 a share after the big box retailer received an upgraded rating from analysts and price target hikes.
On Monday, JPMorgan upgraded Walmart’s rating from Neutral to Overweight, and also lifted the firm’s price target from $66 to $81 a share.
The adjustment was largely due to Walmart’s “strong balance of defense and offense” against a softer consumer backdrop and a highly uncertain second half of 2024, the bank added.
Last week, Walmart held its annual shareholder meeting that boasted a bullish tone among investors, who said they expect the retailer to continue gaining market share and generating double-digit earnings and profit growth.
Walmart is likely to benefit as shoppers continue to lean on the retailer’s general merchandise offerings, analysts said, citing top-line tailwinds in the U.S., including value-oriented consumers and grocery reflation — a period when prices decline due to weak demand. Walmart also stands to get a boost from its additional profit pools, including advertising, its online marketplace which hosts third-party sellers, and its fulfillment services, they added.
Moreover, analysts said they feel their estimates are “beatable” and that there is an under-appreciated inflection in Walmart’s profitability as it relates to the company’s international business.