Walmart (WMT – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst on May 9. Analyst Robert Ohmes from Bank of America Securities maintained a Buy rating on the stock and has a $120.00 price target.
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Robert Ohmes has given his Buy rating due to a combination of factors including Walmart’s strong positioning to manage tariffs, its growing digital advertising business, and its continued share gains across various product categories. Despite the high valuation, Ohmes sees Walmart’s strategic relationships with suppliers and its advanced pricing and inventory management as key strengths that help mitigate tariff impacts. Additionally, Walmart’s digital advertising and ancillary businesses have been growing significantly, contributing to the company’s profitability and positioning it well for future growth.
Ohmes also highlights Walmart’s ability to resonate with a wide range of income levels, particularly higher-income households, due to its value offerings and digital convenience. The company’s long-term profitability outlook is bolstered by improvements in its e-commerce operations and the growth of its third-party marketplace. Although Walmart’s price-to-earnings ratio is at a 20-year high, Ohmes believes that the company’s strategic initiatives and market position justify the valuation and support continued expansion.
In another report released on May 9, UBS also maintained a Buy rating on the stock with a $110.00 price target.
Based on the recent corporate insider activity of 193 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.