Piper Sandler boosted its rating on Walmart (NYSE:WMT) on Tuesday to Overweight from Equal-weight on its view the retail giant will gain market share after rolling back prices.
Analysts Edward Yruma and his team believe that as grocery inflation subsides, Walmart (WMT) will have an opportunity to further extend market share gains.” While we think intuitive logic dictates that WMT is well positioned during an inflationary period (trade down), we believe that a gradual intensification of promos augurs well for WMT given its sharp focus on price.”
Yruma also thinks the market is underappreciating the turnaround at Sam’s Club. In particular, the reinvestment in the private label brand Member’s Mark is said to be a key driver of better business performance.
Piper Sandler raised near-term estimates on WMT and established a new Street-high price target of $210, based on a ~15X multiple of the 20424 EV/ EBITDA estimate.
Walmart (WMT) is due to report earnings on August 17. The consensus estimates are for the Bentonville-based company to report revenue of $158.3B and EPS of $1.67. The PT reps more than 30% upside the retail stock.
Shares of Walmart (WMT) rose 0.92% in premarket trading to $160.76.
