CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
WMT shares began trading at a 3-for-1 split-adjusted price today. Accordingly, we adjust our 12-month target to $65 from $195, 27x our FY 2025 EPS view (adjusted to $2.41 from $7.23; FY 2026 adjusted to $2.60 from $7.79). Many things are working for WMT right now. In-store sales are strong as consumers are shopping for lower-priced groceries more frequently (store remodels are also lifting traffic). WMT is gaining share with upper-income households, which is helping grow its subscription program (Walmart+). Online sales are strong, as global e-commerce sales exceeded $100 billion in FY 2023, up from $82 billion in FY 2022. The growth in online sales is fueling WMT’s higher-margin ad business (global ad sales were $3.4 billion in FY 2023, up from $2.7 billion a year ago), which should see growth accelerate once the Visio acquisition closes. Lastly, WMT is introducing more automation and technology throughout its supply chain, which gives us confidence that we’ll see its margins expand over the next few years.