Walmart deal for Vizio not positive for Electronics rivals, says Morgan Stanley

Morgan Stanley analyst Simeon Gutman notes the unconfirmed media report that Walmart (WMT) is in talks to buy TV maker Vizio (VZIO) and comments that such a potential acquisition would be “a play on data and advertising.” While Walmart, a leader in retail media, would be likely looking for ways to extend its advantage in a more competitive environment and such a deal is “not likely a play for TV market share,” it is also “not a positive for other Electronics retailers,” the analyst tells investors. The firm, which estimates Walmart’s advertising business will generate $3.5B in revenue in calendar 2023 and could grow to $5.9B by 2025, has an Overweight rating and $168 price target on Walmart shares.