Bank of America Securities analyst Robert Ohmes has reiterated their bullish stance on WMT stock, giving a Buy rating yesterday.
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Robert Ohmes has given his Buy rating due to a combination of factors that signal Walmart’s strong performance and growth potential. He highlights the company’s potential for positive comparable sales growth in the fourth quarter, driven by strong transactions and performance in grocery and health/wellness sectors. Additionally, Walmart’s ability to gain market share across various income levels, particularly among higher-income customers, supports this optimistic outlook.
Furthermore, Ohmes points out the strength of Walmart’s digital advertising and third-party marketplace, which contribute significantly to the company’s earnings before interest and taxes. These elements help counterbalance the sales mix challenges presented by lower-margin categories. The expectation of long-term profitability improvements, supported by efficient supply chain investments and marketplace growth, further reinforces the Buy rating, despite the stock’s high valuation.
In another report released yesterday, Morgan Stanley also reiterated a Buy rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 156 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WMT in relation to earlier this year.