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On Thursday, Bernstein analysts maintained an Outperform rating on Walmart Inc. (NYSE:WMT) shares with a steady price target of $108.00. The reaffirmation came after Walmart International CEO Kathryn McLay spoke at the Bernstein 2025 Strategic Decisions Conference, providing insights into the company’s omni-channel retail strategy and growth targets. The retail giant, currently valued at $778 billion, has demonstrated strong momentum with a 51% return over the past year. According to InvestingPro data, 19 analysts have recently revised their earnings expectations upward for the upcoming period.
McLay highlighted that approximately 25% of Walmart’s international sales are currently generated online, with China leading the way through an integrated retail proposition. This digital transformation has contributed to Walmart’s impressive total revenue of $685 billion and 4.22% revenue growth. Walmart’s approach to localizing its Every Day Low Price (EDLP) strategy across various international markets has been adapted to different formats such as bodega, club, and marketplace. This strategy illustrates the potential diversity in the future of omni-channel retail.
Walmart International has set an ambitious target of reaching $200 billion in Gross Merchandise Value (GMV) by 2028, aiming to double its profits. McLay pointed out the potential for expansion in high-growth markets including India, China, and Mexico. Additionally, Walmart is exploring opportunities for new market growth and is keen on unlocking omni-channel capabilities in markets like Canada and Chile.
The company’s international segment is a key focus, with efforts to execute on the broader omni-channel strategy that integrates physical and online retail. Walmart’s international presence and adaptation to local market conditions have been pivotal in driving its global strategy.
The analyst’s reiterated rating and price target reflect confidence in Walmart’s strategic direction and its ability to capitalize on the growth opportunities within the international retail landscape. The company’s focus on omni-channel retail and localization of its EDLP positioning are seen as significant factors in achieving its long-term financial goals.
In other recent news, Walmart reported first-quarter results that exceeded expectations, with earnings per share and comparable sales outperforming forecasts. The company demonstrated strong performance across its store banners, particularly during the Easter period, contributing to its positive quarterly results. Notably, Walmart’s e-commerce operations turned profitable in the U.S. and globally for the first time, marking a significant milestone for the company. Additionally, Walmart has announced plans to cut approximately 1,500 jobs as part of a restructuring effort aimed at streamlining expenses and decision-making processes.
KeyBanc Capital Markets maintained an Overweight rating on Walmart, citing the company’s consistent performance amidst market volatility and tariff concerns. Similarly, Raymond (NSE:RYMD) James and Bernstein both reaffirmed their Outperform ratings, highlighting Walmart’s resilience and strategic advantages, such as diversified sourcing and a focus on high-margin revenue streams. Bernstein noted Walmart’s impressive U.S. comparable sales growth and adjusted earnings per share, which exceeded expectations. Despite ongoing challenges, Walmart has reiterated its full-year guidance, expressing confidence in navigating the current economic landscape.
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