Analyst Oliver Chen from TD Cowen maintained a Buy rating on Walmart and increased the price target to $125.00 from $120.00.
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Oliver Chen has given his Buy rating due to a combination of factors that highlight Walmart’s robust retail ecosystem and innovative strategies. The company demonstrates significant growth across various categories, including a notable increase in advertising and delivery services, which underscores its defensive strengths in the grocery sector and its offensive capabilities in technology. Walmart’s leadership in artificial intelligence is another key factor, as it enhances operational efficiency and customer engagement through advanced technologies like computer vision and micro-fulfillment.
Furthermore, Walmart’s digital leadership is evident with its impressive e-commerce growth, driven by strong performance in pickup, delivery, and advertising. The company’s strategic execution in margin-enhancing areas, such as its digital marketplace and membership programs, further solidifies its market position. Additionally, Walmart’s ability to manage price gaps and improve operational margins faster than sales growth, along with its raised financial guidance, reinforces the confidence in its continued momentum and potential for future success.
According to TipRanks, Chen is a 4-star analyst with an average return of 4.8% and a 50.60% success rate. Chen covers the Consumer Cyclical sector, focusing on stocks such as Tapestry, Canada Goose Holdings, and Kering SA.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $120.00 price target.