Walmart stock climbed Monday after the Dow Jones retail behemoth received an upgrade and major price-target hike.
JPMorgan on Monday upgraded Walmart to overweight from neutral and hoisted WMT stock's price target to 81 from 66, The Fly reported. Walmart stock "adds a strong balance of defense and offense" against a softening consumer backdrop and an uncertain second half of the year ahead, the note said.
Wall Street consensus estimates for Walmart remain beatable, the analyst wrote. Meanwhile, JPMorgan believes Walmart is on track for multiyear, double-digit earnings growth owing to market share gains, rising alternative profit sources, and profit growth from the company's international segment. The note said these factors could drive an uptick in Walmart's valuation multiple.
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Elsewhere, Jefferies also lifted its price target on Walmart stock Monday morning, the Fly reported. Jefferies analysts met with Walmart management while attending the company's annual shareholder meeting to discuss new products and learn more about tech innovations. The firm said it is "encouraged" by Walmart's announcements. And Jefferies believes that artificial intelligence and automation could generate $20 billion or more of incremental earnings before interest and taxes (EBIT) for Walmart by fiscal 2029. The firm raised its price target on Walmart stock to 77 from 75 and kept a buy rating on shares.
Walmart Stock
Walmart stock swung 1.7% higher Monday, closing near a record high. WMT shares are extended above a buy zone for a double-bottom base following a mid-May breakout.
Walmart stock rallied 27.4% this year and hit an all-time high of 67.57 on Friday.
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