To help businesses of all sizes deliver products to their clients, multinational retail company Walmart (WMT) has announced the launch of its delivery service called Walmart GoLocal.
For the last three years, the company has been making deliveries and express deliveries of more than 160,000 items from over 3,000 stores. Also, it continues to grow its existing modes that consist of drones, autonomous vehicles and market fulfillment centers.
The white-label delivery as a service will help deliver products of every size and complex requirements, along with those needed to be delivered within a stipulated time.
The President and CEO of Walmart U.S., John Furner, said, “Walmart has spent years building and scaling commerce capabilities that support our network of more than 4,700 stores and we look forward to helping other businesses have access to the same reliable, quality and low-cost services.”
With this move, the company seeks to diversify its income sources and profit pools with initiatives like Walmart Connect and Walmart Fulfillment Services. (See Walmart stock chart on TipRanks).
On August 18, BofA Securities analyst Robert Ohmes maintained a Buy rating on the stock and raised the price target to $190 from $185. The new price target implies 26.3% upside potential from current levels.
Ohmes is of the opinion that positive store traffic and grocery momentum should support Walmart’s performance. Also, the analyst thinks that the company’s grocery share gains could increase as the environment normalizes.
Consensus among analysts is a Strong Buy based on 18 Buys and 3 Holds. The average Walmart price target of $172.60 implies 14.7% upside potential.
Walmart scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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