Walmart price target raised to $77 from $71 at Deutsche Bank

Deutsche Bank analyst Krisztina Katai raised the firm’s price target on Walmart to $77 from $71 and keeps a Buy rating on the shares after hosting investor meetings with management. The company’s tone was “clear confidence” in its multi-year growth algorithm, led by market share gains, profit unlocks from supply chain automation and alternative value streams, e-commerce profitability within the next few years and general merchandise upside from further strengthening of the assortment, the analyst tells investors in a research note. The firm thinks Walmart could generate close to 30% of operating profit from its alternative value streams by 2026. It believes increased visibility into Walmart’s earnings power from its high-margin alternative businesses will result in further multiple upside.