Walmart (NYSE:WMT) was upgraded from In Line to Outperform by Evercore ISI, with a new price target of $160 (from $145). The firm said the upgrade is due to the potential for traffic and margins to expand over the next two years.
According to the firm, the traffic turn appears to be building, which could result in Walmart regaining market share. However, the analyst warned that the upcoming April Investor Day may disappoint, especially if management tries to pressure the Street to their guidance range.
Despite this, the analysts like Walmart’s scale, balance sheet, and stability, and believe that traffic momentum and margin expansion are likely amidst a decelerating retail world.
