Analyst Zhihan Ma from Bernstein maintained a Buy rating on Walmart and keeping the price target at $117.00.
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Zhihan Ma has given his Buy rating due to a combination of factors that highlight Walmart’s potential for growth and profitability. One of the primary reasons is the anticipated improvement in Walmart’s e-commerce segment. By enhancing automation in fulfillment and optimizing delivery routes, Walmart is expected to achieve profitability in its US e-commerce operations by 2030, which could significantly boost its margins.
Additionally, the expansion of Walmart’s retail media business is projected to contribute to margin growth as it increases its share of gross merchandise value and revenue. Furthermore, Walmart’s stakes in Indian companies like Flipkart and PhonePe present a substantial opportunity for value realization. If these businesses go public, the proceeds could be used for share buybacks, further enhancing shareholder value. These factors combined suggest that Walmart is currently undervalued, trading below its potential price-to-earnings ratio, justifying the Buy rating.
In another report released on September 8, Morgan Stanley also maintained a Buy rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 210 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.