Walmart Stock (WMT) Flattens Despite Customer Data Boosting Price Appeal, Says Analyst

Walmart (WMT) stock checked out flatter today as a leading analyst said knowing their customers inside out would help it avoid tariff pain.

Behave Walmart

Four-star TipRanks-rated analyst Oliver Chen of TD Cowen hailed Walmart’s “data analytics precision around behavioral economics”, which would allow it to be flexible with how it strategically priced key items. These include bananas, coffee, avocados and flowers.

Chen, with a Buy rating and $115 price target on the stock, said being able to be flexible with its prices to take into account how its customers were coping with any economic pressure would drive more people into its stores and gain market share.

Walmart has warned that it will be hiking prices in response to higher costs resulting from President Trump’s tariffs strategy. Chen said Walmart’s Back to School range would be the “first assortment with tariff inflation fully embedded.”

Low-Cost Winners

Chen also expects low single digit grocery inflation with general merchandise unlikely to see an impact unless there are higher energy prices.

In a conversation with Steph Wissink, Senior Vice President, Investor Relations at Walmart, Chen said he was informed that consumer sentiment had “stabilized” since the initial tariff shock. This was particularly notable among low income shoppers.

Customers are still sensitive about price but Chen believes Walmart’s low-cost model and ability to serve 95% of Americans with delivery in less than 3 hours makes it stand out.

Is WMT a Good Stock to Buy Now?

On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 2 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $109.38 implying an 12.51% upside.

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