Walmart: Structural Flywheel Strength and eCommerce Momentum Support Buy Rating Despite Limited Near-Term Multiple Upside

Simeon Gutman, an analyst from Morgan Stanley, reiterated the Buy rating on Walmart. The associated price target remains the same with $135.00.

Simeon Gutman has given his Buy rating due to a combination of factors tied to Walmart’s structural strengths and earnings outlook. He argues that Walmart’s scale, pricing power, and expanding eCommerce ecosystem are reinforcing a virtuous “flywheel” that supports continued market share gains and margin improvement, justifying a valuation premium even after the stock’s rerating.

Gutman also expects near‑term results to modestly exceed current forecasts, with U.S. comparable sales benefiting from robust eCommerce, broader same‑day delivery, and resilient demand across income cohorts. While he sees limited scope for further multiple expansion in the short run and anticipates cautious initial fiscal 2027 guidance, he believes the risk/reward remains attractive given Walmart’s defensive profile and potential for accelerating earnings momentum.

According to TipRanks, Gutman is a 4-star analyst with an average return of 4.6% and a 61.29% success rate. Gutman covers the Consumer Cyclical sector, focusing on stocks such as Best Buy Co, Dick’s Sporting Goods, and Home Depot.

In another report released today, Bernstein also maintained a Buy rating on the stock with a $129.00 price target.