Street Calls of the Week
Investing.com - UBS raised its price target on Walmart (NYSE:WMT) to $122.00 from $110.00 on Thursday, while maintaining a Buy rating on the retail giant’s stock. The stock, which has delivered a robust 30% return over the past year, is currently trading near its 52-week high of $109.58.
The price target increase reflects UBS’s positive assessment of Walmart’s data strategy, particularly its Walmart Data Ventures unit formed in 2021 to capitalize on information gathered from approximately 270 million customers and members across 10,500 stores and websites in 19 countries. With a market capitalization of $850 billion and annual revenue exceeding $693 billion, Walmart maintains a strong financial position, earning a "GOOD" overall health score according to InvestingPro analysis.
UBS highlighted that Walmart’s data capabilities serve as "one of the most critical drivers of its day-to-day operations and long-term strategy" and "permeates every facet of the business." While trading at a relatively high P/E ratio of 40.22, InvestingPro data reveals that 21 analysts have recently revised their earnings expectations upward, suggesting continued confidence in the company’s growth trajectory.
The firm noted that Walmart Data Ventures provides "high-quality, actionable first-party data to suppliers, merchants, and brands," creating value throughout Walmart’s ecosystem.
UBS also emphasized that Walmart’s data assets drive its retail media business and help optimize inventory levels, calling it "a unique asset that other retailers would have difficulty replicating."
In other recent news, Walmart has announced a partnership with OpenAI, allowing consumers to shop through ChatGPT using the Instant Checkout platform. This collaboration has led DA Davidson to reiterate its Buy rating on Walmart stock, maintaining a price target of $117.00. Additionally, BTIG has initiated coverage on Walmart with a Buy rating, setting a price target of $120.00 and projecting earnings per share of $2.60 for fiscal year 2026 and $2.85 for 2027. In a separate development, Walmart has stopped offering H-1B visas, a decision influenced by the Trump administration’s recent $100,000 fee increase. Despite these changes, John Furner, CEO of Walmart U.S., noted that shoppers remain resilient, continuing to spend at healthy rates despite economic uncertainties and tariff pressures. These developments reflect the company’s strategic adjustments in response to both market conditions and regulatory changes.
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