On Monday, DA Davidson maintained its bullish stance on Walmart Inc. (NYSE:), reiterating a Buy rating and $85.00 price target. The recommendation followed a recent call with Walmart’s CFO John David Rainey and SVP of Investor Relations Steph Wissink, which offered deeper insights into the company’s strategies discussed during last Thursday’s conference call.
Walmart has been recognized for its ability to increase market share through improved customer experiences, significant investments in associates and store improvements, and margin growth. The retail giant has achieved these milestones by leveraging alternative business models, automation, and competitive pricing strategies.
The company’s financial strategy allows for simultaneous investments in price competitiveness and wage increases while improving margins. This balanced approach underpins DA Davidson’s confidence in Walmart’s valuation and justifies a premium multiple of 30 times core earnings.
In addition, the analyst highlighted Walmart’s potential earnings enhancement from its investments in international e-commerce and technology companies such as Flipkart, PhonePe and JD (NASDAQ:).com. These factors, coupled with discounted cash flow analysis, support the firm’s $85 price target for the stock, which DA Davidson calls the “best-of-breed bison” in the retail sector.
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