Morgan Stanley analyst Simeon Gutman has maintained their bullish stance on WMT stock, giving a Buy rating on March 12.
Simeon Gutman has given his Buy rating due to a combination of factors that highlight Walmart’s strategic advancements and financial improvements. One of the key reasons is the anticipated profitability of Walmart’s U.S. e-commerce segment, which is expected to be realized as early as the first quarter of 2025. This is attributed to the benefits of scale in first-party and third-party sales, as well as increased advertising and membership income, which collectively enhance Walmart’s control over its profit margins.
Furthermore, the significant reduction in e-commerce EBIT losses from $2 billion in 2023 to an estimated $400 million in 2024 underscores the effectiveness of Walmart’s investments in e-commerce and related areas. The improved incremental margins and substantial year-over-year EBIT improvement are pivotal in this assessment. These developments not only validate Walmart’s long-term strategy but also position the company favorably in the competitive retail landscape, justifying the Buy rating.
In another report released on March 12, Bank of America Securities also maintained a Buy rating on the stock with a $120.00 price target.
Based on the recent corporate insider activity of 168 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.