Walmart’s Strong Market Position and Growth Potential Justify Buy Rating

In a report released today, Simeon Gutman from Morgan Stanley maintained a Buy rating on Walmart (WMT – Research Report), with a price target of $115.00.

Simeon Gutman has given his Buy rating due to a combination of factors that highlight Walmart’s strong market position and growth potential. One of the primary reasons is the robust growth in Walmart+ membership, which has shown significant year-over-year expansion. This growth is indicative of Walmart’s successful strategies in expanding its delivery areas and enhancing its eCommerce capabilities.
Moreover, the Walmart+ program is contributing positively to Walmart’s profitability by leveraging its leading position in the grocery sector to foster customer loyalty and attract higher-income shoppers. This not only creates a high-margin recurring revenue stream but also enhances platform monetization through increased advertising revenue and data collection. These factors collectively underscore Walmart’s potential for sustained growth and profitability, justifying the Buy rating.

In another report released on May 28, Bernstein also assigned a Buy rating to the stock with a $108.00 price target.

Based on the recent corporate insider activity of 199 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.