Walmart, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Simeon Gutman from Morgan Stanley maintained a Buy rating on the stock and has a $115.00 price target.
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Simeon Gutman has given his Buy rating due to a combination of factors that highlight Walmart’s strategic positioning and growth potential. The company’s Walmart+ membership program is a significant driver of its eCommerce strategy, showing substantial growth with approximately 17.3 million members after adjustments. This membership expansion is crucial as it enhances Walmart’s delivery capabilities, aiming to cover 95% of U.S. households with same-day delivery by year-end.
Furthermore, the Walmart+ program strengthens customer loyalty and encourages repeat purchases, particularly among middle- and high-income households. This not only increases the share of wallet in grocery but also in general merchandise categories. The program also provides a high-margin recurring revenue stream and supports better monetization through Walmart Connect, its retail media platform. These factors collectively contribute to a positive outlook for Walmart’s stock, justifying the Buy rating.
According to TipRanks, Gutman is a 4-star analyst with an average return of 4.1% and a 62.10% success rate. Gutman covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Topgolf Callaway Brands, and Wayfair.
In another report released on September 5, UBS also maintained a Buy rating on the stock with a $110.00 price target.