In a report released today, Simeon Gutman from Morgan Stanley maintained a Buy rating on Walmart (WMT – Research Report), with a price target of $115.00.
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Simeon Gutman has given his Buy rating due to a combination of factors that highlight Walmart’s strong performance and growth potential. One of the primary reasons is the significant increase in Walmart+ membership, which reached a new all-time high in April 2025. This growth in 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.
Furthermore, the Walmart+ program contributes to a high-margin recurring revenue stream and enhances eCommerce penetration in general merchandise. This, in turn, supports better platform monetization through advertising revenue via Walmart Connect. 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 covers the Consumer Cyclical sector, focusing on stocks such as Wayfair, Advance Auto Parts, and Home Depot. According to TipRanks, Gutman has an average return of 2.5% and a 58.75% success rate on recommended stocks.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $102.00 price target.