E-commerce retailer Walmart (WMT) announced that it has entered into a strategic partnership with Adobe (ADBE) to extend its technologies and capabilities to other businesses and brands. The terms of the deal have not been disclosed so far.
With this association, Walmart’s unique cloud-based services will be made available to retail businesses of all sizes through Adobe Commerce platform. The platform currently offers commerce solution for merchants and brands.
Also, the retail businesses will be able to reach new customers through Walmart’s Marketplace where they can make use of its in-store pickup and delivery services. The company noted that the partnership will help businesses improve their operational efficiency.
The move comes on the back of growing digital demand. Also, Walmart seeks to target a larger client base for its marketplace. (See Walmart stock chart on TipRanks)
The CEO of Walmart U.S., John Furner, said, “We’ve built new capabilities to serve the evolving needs of our own customers, and we have a unique opportunity to use our experience to help other businesses do the same.” He added, “Commercializing our technologies and capabilities helps us sustainably reinvest back into our customer value proposition.”
Citigroup analyst Paul Lejuez has maintained a Buy rating on the stock with a price target of $179 (25.5% upside potential).
Lejuez said, “Walmart is emerging from the pandemic stronger than ever.” The analyst expects the company to benefit from the growth in “additional higher-margin profit streams” like advertising, fulfillment services, marketplace and financial technology.
The stock has a Strong Buy consensus based on 14 Buys and 3 Holds. The average Walmart price target of $167.06 implies 17.1% upside potential from current levels. Shares have gained 8.3% over the past year.
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