Typically, we associate analyst days with electric car manufacturer Tesla (NASDAQ:TSLA). However, it appears that this phenomenon could provide a boost to a different major brand in an entirely different market – the retailer Walmart (NYSE:WMT), which is about to host its own event for analysts. Morgan Stanley believes that this could be the beginning of something significant, and Walmart investors seem to agree, with share prices rising in Monday afternoon’s trading.
According to Morgan Stanley analyst Simeon Gutman, Walmart’s stock may have lagged behind recently, but this could change dramatically with the upcoming analyst day. So far, Gutman approves of Walmart’s “risk/reward skew” and “EPS visibility.” Coupled with improvements to its e-commerce operations, the growth of Walmart+, and other factors, the result could be a spectacular show.
Indeed, a great deal has been happening behind the scenes at Walmart that is likely to contribute to its success going forward. Despite its long-standing claim that 90% of Americans live within 10 miles of a Walmart, the company has announced plans to close some stores. Additionally, Walmart is exploring more AI services to enhance the shopping experience for its customers, combining vast amounts of customer data with machine learning systems to ensure that the items customers want to buy are available as often as possible.
This is a fact not lost on analysts. Analyst consensus currently calls Walmart stock a Strong Buy. Better yet, Walmart stock also offers an upside potential of 13.16% thanks to its average price target of $163.52.
