Analyst Simeon Gutman from Morgan Stanley maintained a Buy rating on Walmart (WMT – Research Report) and keeping the price target at $115.00.
Simeon Gutman has given his Buy rating due to a combination of factors that highlight Walmart’s strategic advancements and financial performance. The company has significantly enhanced its financial model through strategic investments in technology, automation, and AI, which have accelerated its growth trajectory. These investments have not only improved Walmart’s operational efficiency but have also increased its profit margins, particularly in its US eCommerce platform, which is now converting sales at higher incremental margins.
Moreover, Walmart’s scale and continuous investment in technology are expected to further solidify its competitive advantage. The company’s flexible supply chain and automation efforts are reducing costs and increasing efficiency, while AI applications are enhancing productivity and customer experience. Despite some concerns about consumer sentiment, the overall stability of the consumer market supports a positive outlook. These factors collectively contribute to the Buy rating, reflecting confidence in Walmart’s ability to sustain its growth and profitability.
According to TipRanks, Gutman is a 4-star analyst with an average return of 2.6% and a 59.48% success rate. Gutman covers the Consumer Cyclical sector, focusing on stocks such as Advance Auto Parts, Tractor Supply, and Best Buy Co.
In another report released on February 28, TD Cowen also maintained a Buy rating on the stock with a $115.00 price target.