Walmart: Digital Ecosystem and Scale-Driven Price Leadership Support Durable Earnings and Upside Potential

Analyst Simeon Gutman of Morgan Stanley reiterated a Buy rating on Walmart, retaining the price target of $135.00.

Simeon Gutman has given his Buy rating due to a combination of factors tied to Walmart’s consistent operating strength and digital momentum. He highlights that the company’s eCommerce ecosystem—spanning first‑ and third‑party online sales, its Walmart Connect advertising business, and Walmart+ memberships—is delivering robust growth and increasingly contributing to operating income, even as Walmart invests aggressively in lowering grocery prices.

Gutman also notes that Walmart’s scale and technology capabilities allow it to widen its price advantage in grocery while still expanding margins, reinforcing a “big get bigger” dynamic and supporting share gains. With management demonstrating it can offset deeper price rollbacks through higher-margin digital revenue streams, he views the earnings power as durable, sees a favorable balance of upside versus downside scenarios, and therefore reiterates an Overweight/Buy rating with a $135 price target.

In another report released today, TipRanks – PerPlexity also reiterated a Buy rating on the stock with a $145.00 price target.