Walmart Stock (WMT) Has Strong ‘Growth Potential’ says Analyst as Well-Heeled Shoppers Flock to Stores

Growing demand for Walmart+ (WMT) membership will keep the retailer powering forward, according to a leading analyst.

All Time High Membership

Four-star TipRanks-rated analyst Simeon Gutman of Morgan Stanley maintained a Buy rating on the Walmart stock with a price target of $115.

Gutman said he likes the retailer’s “strong performance and growth potential.” One of the drivers of that confidence is the significant increase in Walmart+ membership which reached an all-time high in April this year.

Walmart+ for the uninitiated is a paid membership program from Walmart offering various benefits to members, including free delivery, free shipping, member prices on fuel, and access to other exclusive deals.

“This growth membership is a key driver for Walmart’s alternative profit model, as it leverages the company’s leading position in the grocery sector to build customer loyalty and attract middle to high income shoppers,” Gutman said.

Robust Financial Health

He added that the membership program also boosts Walmart’s high-margin recurring revenue stream and enhances its e-commerce “penetration in general merchandise.”

“The ongoing expansion of Walmart+ membership aligns with management’s commentary on growth, resulting in double-digit membership income growth, which is a positive indicator for the company’s financial health and future prospects,” Gutman said.

But it wasn’t all good news for Walmart. Truist lowered the firm’s price target on Walmart to $107 from $111, but kept a Buy rating on the stock. It said that while current consumer trends seem positive given fine April weather and demand from a late Easter holiday, sales and gross margin risks remain. That is because of the potential impact from President Trump’s tariffs.

Is WMT a Good Stock to Buy?

On TipRanks, WMT has a Strong Buy consensus based on 29 Buy and 2 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $108.32 implying an 9.36% upside.

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