Walmart’s Strong Outlook Driven By 3 Strategic Advantages, Analyst Says – Walmart (NYSE:WMT)

Walmart Inc‘s WMT investor day highlighted that the U.S. ecommerce business is inflecting positive sooner than expected, while management reiterated their first-quarter and full-year sales guidance, according to Goldman Sachs.

The Walmart Analyst: Analyst Kate McShane maintained a Buy rating and price target of $106.

The Walmart Thesis: The company reiterated its first-quarter sales growth guidance of 3%-4%, despite recent volatility, McShane said in the note.

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She added, however, that Walmart had widened the range for operating income growth “due to less favorable category mix, higher casualty claims expense and the desire to maintain flexibility to invest in price as tariffs are implemented.”

The analyst stated that the company reiterated its full-year sales and operating income growth guidance, with its confidence stemming from:

• Ability to manage quantities, cost, and retail prices to compete against peers
• History of market share gains during more difficult and uncertain times
• Levers that Walmart can pull to drive efficiencies in its business

WMT Price Action: Shares of Walmart had risen by 1.6% to $91.10 at the time of publication on Thursday.

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