Goldman Sachs analyst Kate McShane reiterated a Buy rating on Walmart on September 15 and set a price target of $114.00.
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Kate McShane has given her Buy rating due to a combination of factors that highlight Walmart’s strong growth potential and competitive positioning. The company has demonstrated an ability to sustain top-line growth at 4% or better, with operating income expected to grow in the high single to low double digits. A significant driver of this profitability improvement is the enhanced performance of its US eCommerce segment, which has seen a notable increase in profitability due to reduced delivery costs and the success of alternative revenue streams such as marketplace and media ventures.
Furthermore, Walmart’s competitive edge against Amazon is reinforced by its efficient delivery capabilities, reaching 94% of US households within three hours, with plans to expand this reach. The company’s marketplace is also uniquely positioned, leveraging its status as the largest grocer in the US to offer a differentiated grocery selection. Additionally, Walmart is integrating digital tools and services to enhance customer experience, further solidifying its market position. These strategic initiatives underpin McShane’s confidence in Walmart’s continued strong performance, both in the short and long term.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $125.00 price target.