Walmart Stock Target Increased by Bank of America Following Investor Relations Meetings

Bank of America recently increased its price target for Walmart to $95 per share from a previous target of $85. This adjustment follows a tour of a Supercenter in Charlotte and discussions with Walmart’s Investor Relations team.

The bank has maintained a Buy rating for Walmart, citing the retailer’s emphasis on value and convenience, which appeals to a wide range of customers across different income levels and product categories.

Analysts were particularly impressed by Walmart’s ongoing strength in the grocery sector, emphasizing the company’s commitment to competitive pricing. They noted that Walmart excels in providing both price and convenience to shoppers.

Walmart’s expansion of its private label products has garnered positive consumer feedback, especially the newly introduced “Bettergoods” brand, which offers affordable and trendy items, with 70% of the selection priced under $5.

The bank also highlighted Walmart’s advancements in digital services, particularly delivery options. They mentioned that the “Pick-Up 2.0” format has enhanced order fulfillment and productivity.

Additionally, Walmart+ memberships, which offer unlimited pickup and delivery services, are making significant contributions to the delivery business, especially among lower-income customers who often depend on public transportation.

The remodels in product categories like apparel, home goods, and adult beverages have reportedly driven sales increases, with fashion sales rising by 15%, fueled by a 200% increase in digital sales, and a 30% rise in adult beverage sales. New product additions, such as the MacBook Air, have further bolstered electronics sales.

According to Bank of America, Walmart is well-prepared for the upcoming holiday season, launching promotions earlier than ever, starting on October 8 for Walmart+ members. The company’s strategy also includes a focus on budget-friendly options, such as its “inflation-free” holiday meals program.