Zhihan Ma, an analyst from Bernstein, maintained the Buy rating on Walmart. The associated price target was raised to $117.00.
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Zhihan Ma has given his Buy rating due to a combination of factors including Walmart’s strong sales performance and positive future guidance. Despite some mixed results in the second quarter, Walmart exceeded expectations with a 5.6% growth in net sales, surpassing their previous guidance. Although there were challenges such as higher self-insured general liability claims affecting EBIT growth, the company still managed to outperform in key areas like US comparable sales.
Furthermore, Walmart has raised its full-year net sales and EPS guidance, indicating confidence in its ongoing operations. The company expects significant growth in its e-commerce sector, driven by efficiency improvements and automation, which should enhance its profit margins. Additionally, Walmart’s global advertising revenue has shown impressive growth, further supporting the positive outlook. These factors collectively suggest a solid underlying momentum, justifying the Buy rating.
According to TipRanks, Ma is a 4-star analyst with an average return of 12.0% and an 84.09% success rate. Ma covers the Consumer Defensive sector, focusing on stocks such as Target, Costco, and Dollar General.
In another report released today, Citi also maintained a Buy rating on the stock with a $120.00 price target.