Analysts at Bank?of?America reiterated their “Buy” rating on Walmart?Inc. (NYSE:?WMT), raising no doubts about the retail behemoth’s enduring value proposition, omni?channel expansion, and growing profitability engines.
1. Dominant Convenience and Same?Day Delivery
Household Reach: Walmart’s same?day service now covers 76% of U.S. households and is on track to hit 95% by year?end.
Speed Innovations: From curbside pickup to last?mile drone drops, Walmart continues to shrink delivery windows—a key moat against both pure?play e?tailers and grocery chains.
2. E?Commerce Powerhouse
20%+ Growth: Online sales are accelerating at over 20% annually, contributing to half of total net sales growth.
AI & Automation: The “Sparky” AI assistant and expanded fulfillment?center robotics have improved conversion and cut fulfillment costs, driving margin resilience.
3. International Momentum
Sam’s Club China: Average delivery times down to 46?minutes.
Flipkart (India): A record 3?minute delivery service highlighted as a global benchmark in BofA’s note.
4. Margin Expansion from New Verticals
Digital Advertising: Higher?margin ad sales are scaling rapidly to capitalize on Walmart’s 150?million weekly shoppers.
Third?Party Marketplace: Seller fees and value?added services are lifting gross merchandise volume without capital?intensive inventory.
Wage Investments: Targeted wage hikes have improved retention and service quality, offset by productivity gains from automation.
Track the full distribution of Walmart’s analyst price targets: Analyst Price Targets for WMT
5. Valuation and Risk Profile
$120 Price Target: Implies a 41× multiple on BofA’s FY27 EPS estimate of $2.90, reflecting Walmart’s sticky comps and robust free?cash flow generation.
Risks: Potential margin pressure from pharmacy reimbursement headwinds and food?price deflation. However, scale, supply?chain efficiency, and tech investments underpin BofA’s conviction.
Review Walmart’s credit rating and key financial metrics: Walmart Credit & Company Profile
