Walmart (NYSE:WMT) has a very successful 2024. Following the Arkansas-based retailer's first-quarter earnings and shareholder event, three analysts offered their opinions on the company's future potential.
Walmart analyst: Oppenheimer maintained an outperform rating on Walmart and raised its price target to $75 from $69 in a June 7 note. Bank of America maintained a buy rating and a $75 price target in a Monday note. Analysts at Telsey Advisory Group maintained a buy rating and raised their price target to $75.
Lessons from Oppenheimer: Oppenheimer analysts are betting on the company's move into private-label products with Better Goods, the widespread adoption of AI walk-out technology in Sam's Club stores and future e-commerce profitability.
“We have strong management execution,
“Further expansion of WMT's key geographies and higher-margin alternative revenue streams (e.g., media, membership and marketplace),” the report said. “Going forward, we expect continued better-than-expected operating results and salary increases to support WMT's premium valuation.”
Bank of America Points: Analysts at Bank of America are also optimistic about Walmart's e-commerce profitability.
“Store remodels, online SKU expansion and express delivery (within three hours) are driving broad base growth and participation in WMT+ (even at lower income levels). Delivery is growing larger than pickup, with in-store fulfilled e-commerce (now over half of WMT e-commerce) seeing the strongest growth,” the report said.
Bank of America analysts similarly called Better Goods a step in the right direction for Walmart, calling it its “largest private-label food launch in the last 20 years.” The report highlighted strong customer response to the product.
TAG Points: Telsey analysts highlighted growing e-commerce profitability and “better goods,” but also spoke more broadly.
“We believe Walmart's focus on value, flexibility and convenience means it is well positioned to gain market share across all income levels, regardless of environment,” the report said. “The expansion of high-quality merchandise, including premium and private labels, and the convenience offered by Walmart+ membership and digital/marketplace should help it gain and retain share among higher-income households.”
Analysts also noted that international markets, particularly India and China, were promising drivers of future growth.
WMT Price Trend: Walmart shares were up 1.2% at the time of writing, trading at $66.70.
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Walmart photo: Sundry Photography via Shutterstock
