Walmart $WMT 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 $JPM 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.