Analyst Simeon Gutman from Morgan Stanley maintained a Buy rating on Walmart and keeping the price target at $115.00.
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Simeon Gutman has given his Buy rating due to a combination of factors related to Walmart’s strategic growth and membership expansion. The latest survey data indicates that Walmart+ membership has reached a new high, suggesting a successful rebound from previous slumps and aligning with the company’s strategy to enhance its eCommerce operations.
Walmart’s ability to expand its membership base is seen as a key driver of its alternative profit flywheel. This growth is supported by the company’s strong position in the grocery sector, which helps build customer loyalty and attract higher-income shoppers. Additionally, the increase in membership contributes to a high-margin recurring revenue stream and enhances platform monetization through advertising and data collection, further justifying the Buy rating.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $106.00 price target.
Based on the recent corporate insider activity of 205 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WMT in relation to earlier this year.