Walmart Inc. (NYSE:WMT) has strong sales momentum and its focus on managing costs could boost results in fiscal 2023, according to BofA Securities.
The Walmart Analyst: Robert Ohmes maintained a Buy rating for Walmart, while keeping the price target unchanged at $160.
The Walmart Thesis: The Bentonville, Arkansas-based company continues to diversify its business and deepen its customer engagement with Health & Wellness, Financial Services and the Walmart Plus membership program, Ohmes noted.
Walmart also has “impressive momentum in International ancillary businesses,” including:
BAIT, a service for customers to place calls and access the internet in Mexico where 40% of households do not have access to the internet. BAIT currently has about 3.7 million members.
Digital payment platform PhonePe in India has hit $800 billion in annualized total payments value, with 2.7 million transactions per month and 30 million merchants across India, he added.
“We continue to see WMT well-positioned in a highly inflationary environment as many shoppers across WMT’s broad customer base will likely continue to favor its variety of value-priced offerings,” Ohmes further wrote in the note.
WMT Price Action: Shares of Walmart declined slightly to $125.00 at the time of publication Monday.
