Walmart added back to Top Pick status at Oppenheimer

Following Walmart’s results, Oppenheimer analyst Rupesh Parikh says that the underlying health of the business looks stronger than what the firm envisioned pre-print with larger share gains in grocery, healthy momentum from alternative revenue streams, and more discipline on the capex front. Oppenheimer sees management guidance for a +2%-2.5% Walmart U.S. comp as conservative amidst its expectations for stronger levels of food inflation, the potential for ongoing share gains, and high-single-digit comp momentum exiting 2022. With the bar reset and the firm’s favorable fundamental views, Oppenheimer is re-adding Walmart back to top pick status following a multi-quarter break. The firm has an Outperform rating on the shares with a price target of $160.