Walmart shares have pulled back, but Bank of America is telling investors the move may have created a fresh opportunity in one of retail’s biggest names.
In a Bank of America note given to TheStreet, analyst Christopher Nardone reiterated a Buy rating on Walmart (WMT) while lowering the firm’s price objective to $144 from $150
The new target still implies 18.7% upside from the $121.34 price listed in the note, giving the call a bullish tone even as the analyst acknowledged a more challenging backdrop for consumers. The firm’s argument rests on a familiar Walmart advantage that can become more powerful when shoppers get cautious. As consumers focus more on price, Bank of America expects Walmart to keep gaining share, supported by its scale, value positioning, e-commerce business, marketplace growth, and alternative revenue streams.
Bank of America sees Walmart gaining share Bank of America said the current environment is “ripe” for Walmart to gain share as price-conscious shoppers look for value across grocery, general merchandise, and household categories. The firm expects those share gains to accelerate and help Walmart return to a beat-and-raise cycle, assuming the freight environment does not get worse. Walmart recently raised its full-year net sales guidance to the high end of its 3.5% to 4.5% constant-currency range, according to the note.