Analyst Simeon Gutman of Morgan Stanley maintained a Buy rating on Walmart (WMT – Research Report), retaining the price target of $115.00.
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Simeon Gutman has given his Buy rating due to a combination of factors related to Walmart’s strategic transformation and growth in eCommerce. Over the past decade, Walmart has evolved from a traditional brick-and-mortar retailer into a significant player in eCommerce, retail media, and supply chain innovation. This transformation has been marked by substantial investments in pricing, staffing, and initial eCommerce losses, which have now begun to pay off as the company achieves economies of scale and profitability improvements.
Walmart’s eCommerce growth is driven by its synergistic revenue streams, including online merchandise sales, advertising income through Walmart Connect, and membership fees from Walmart+ subscriptions. These components collectively enhance top-line growth and market share. As a result, Walmart’s operating margins have stabilized, and its revenue growth is expected to continue at a healthy pace, supporting the Buy rating from Simeon Gutman.
In another report released on June 25, UBS also maintained a Buy rating on the stock with a $110.00 price target.
Based on the recent corporate insider activity of 204 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.