Walmart’s Strong Growth and Market Share Gains Merit a Buy Rating with Increased Price Target (2024)

In a report released yesterday, Kate McShane from Goldman Sachs reiterated a Buy rating on Walmart (WMT – Research Report), with a price target of $73.00.

Kate McShane’s rating is based on the solid performance and positive growth indicators observed in Walmart’s recent financial results. She notes that Walmart has outperformed, reflected in its strong first-quarter results and the upward revision of its guidance for the fiscal year 2024. The company’s ability to gain market share is attributed to its competitive edge in offering value and convenience to its customers. Moreover, McShane highlights that not only are sales increasing, but profitability is also on the rise, with operating income growing faster than sales.

The decision to reiterate a Buy rating for Walmart, along with setting a new price target of $73, is supported by the expectation that Walmart will maintain its earnings momentum throughout the year. The combination of market share gains and an improving profitability profile suggests that Walmart is in a strong position to continue its growth trajectory. McShane’s analysis indicates confidence in the company’s strategy and performance, leading to the conclusion that Walmart’s stock represents a sound investment opportunity.

According to TipRanks, McShane is a 4-star analyst with an average return of 4.7% and a 60.65% success rate. McShane covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Dollar General, and RH.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $60.00 price target.

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Walmart (WMT) Company Description:

Walmart, Inc. boasts retail and wholesale businesses. It offers an assortment of merchandise and services at everyday low prices through its stores, Walmart.com and mobile apps. The company conducts its operations through three business segments: Walmart U.S., Walmart International, and Sam’s Club (membership-only warehouse clubs and samsclubs.com). The company was founded by Samuel Moore Walton and James Lawrence Walton in 1945 and is headquartered in Bentonville, AR.