On Monday, Piper Sandler confirmed its Overweight rating on Walmart (NYSE: NYSE:WMT), maintaining a price target of $93.00. The retail giant, now commanding a market capitalization of $768.8 billion, has seen its stock surge over 83% year-to-date. According to InvestingPro analysis, the stock is currently trading above its Fair Value. The firm's positive stance is based on Walmart's recent acquisition of VIZIO, a move expected to significantly bolster the retail giant's advertising business, Walmart Connect.
The $2.3 billion acquisition is seen as a strategic step to tap into the burgeoning connected TV (CTV) advertising market. Walmart aims to leverage VIZIO's advanced CTV ad data capabilities, which are considered to be more effective for advertisers compared to traditional linear TV advertising spots. The enhanced targeting capabilities provided by VIZIO's technology are anticipated to be a major asset for Walmart, building upon its impressive annual revenue of $673.8 billion.
VIZIO, with its 19 million active user accounts, exhibits a robust growth trajectory, having expanded at a compound annual growth rate (CAGR) of over 23% over the past five years. This user base growth is expected to continue, potentially leading to increased advertising partnerships. Walmart plans to utilize VIZIO's SmartCast platform and Automatic Content Recognition (ACR) data to deliver more precise marketing for its suppliers, ultimately aiming to improve suppliers' return on ad spend (ROAS).
Walmart Connect's revenue has already shown impressive growth, with a year-to-date increase of approximately 27% in 2024. The integration of VIZIO is projected to sustain or even accelerate this growth trajectory, as Walmart delves deeper into the CTV advertising space.
In other recent news, Walmart Inc. and Amazon.com (NASDAQ:AMZN) have reported record-breaking sales during the holiday season, outperforming competitors like Target (NYSE:TGT) and Best Buy (NYSE:BBY). Walmart also recently completed its acquisition of consumer electronics company VIZIO, a move aimed at accelerating the growth of Walmart Connect, its U.S. advertising business.
Additionally, Walmart's Executive Vice President, President, and CEO of Walmart International, Kathryn McLay, has established a prearranged stock trading plan for asset diversification and financial planning, selling 4,000 shares of Walmart common stock monthly from March 2025 through December 2025.
Recent analyses from KeyBanc and BofA have highlighted mixed retail spending trends following Black Friday, with Walmart continuing to gain market share despite a slight decrease in indexed spend. In contrast, BofA underscored Walmart's success in executing a well-planned holiday sales strategy, which included early deal launches, exclusive access for loyalty members, and significant discounts on membership fees. These developments come on the heels of Walmart's strong third-quarter performance, with consolidated revenues increasing by 5.5% and global eCommerce sales rising by 27%.
Financial firms such as Barclays (LON:BARC), KeyBanc Capital Markets, Piper Sandler, Baird, Guggenheim, and RBC Capital Markets have adjusted their outlooks on Walmart, maintaining positive ratings and raising their price targets.
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