U.S. retailer Walmart (WMT) was said to be in a ‘grocery/technology’ nexus today, which was timely given its debut on the tech-focused Nasdaq index.
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Let’s Get Phygital
Oliver Chen, analyst at TD Cowen, raised his price target on the stock from $125 to $136 and kept a buy rating.
He said that Walmart was one of the company’s best ideas for 2026 given its ‘People-Enabled Phygital, Adaptive, Grocery Tech Nexus.’
“Save money, live better and people-enabled AI equals a growth recipe,” said Chen. “We like WMT’s store footprint and moat of fast/convenient delivery, attractive to all-income customers. Walmart is building a powerful ecosystem nexus, which will yield profit growth faster than sales growth.”
The Bifurcated Consumer
Chen said AI is “pervasive at WMT and is evolving from predictive to prescriptive.” He added: “The company is leaning into AI across the business, from customer-facing Sparky to inventory management. Further, with 100 million plus customer visits per week, the company’s scale gives it a significant advantage in scaling tech and digital initiatives.”
With a solid grocery business and leading digital platform, Chen believes that Walmart can successfully play offense and defense. “This balance is particularly important in the world of an increasingly bifurcated consumer,” he said.
Walmart, whose shares climbed 0.42%, said it would transfer the listing of its common stock from the New York Stock Exchange to the Nasdaq at its Q3 earnings results last month.
“Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy. Walmart is setting a new standard for omnichannel retail by integrating automation and AI,” said John David Rainey, Walmart’s chief financial officer.
This year Walmart has continued its tech drive with an Open AI partnership and GenAI innovations.
Walmart reported better-than-expected Q3 earnings and revenues and gave a hike to its 2026 outlook.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 26 Buy ratings. Its highest price target is $136. WMT stock’s consensus price target is $122.52, implying a 7.30% upside.
