Walmart stock target raised at Bank of America after IR meetings

Investing.com — Bank of America raised its price target for Walmart (NYSE:) to $95 from $85 per share in a note Friday, following a store tour of a Charlotte Supercenter and discussions with Walmart’s Investor Relations team, including Kary Brunner and Ivy Barney.

BofA continues to recommend a Buy rating for Walmart, citing the retailer’s focus on value, convenience, and its ability to attract customers across various income levels and product categories.

BofA analysts were impressed by Walmart’s continued strength in the grocery sector, with the company maintaining a focus on price competitiveness.

“Walmart continues to win on price and convenience,” the analysts noted.

They highlighted Walmart’s expansion of its private label products, which have shown strong consumer response, particularly the new “Bettergoods” brand, featuring affordable, trend-forward items, with 70% of products priced under $5.

The bank also emphasized Walmart’s success in digital services, particularly in delivery.

BofA said the company’s “Pick-Up 2.0” format has improved order fulfillment and productivity.

Furthermore, Walmart+ memberships, which offer unlimited pickup and delivery services, are said to be contributing significantly to the delivery business, particularly among lower-income customers who rely on public transportation, according to the bank.

BofA believes Walmart’s remodels in apparel, home goods, and adult beverages have boosted sales, with fashion sales increasing 15%, driven by a 200% surge in digital sales, and adult beverages up 30%, while new additions like Apple (NASDAQ:)’s MacBook Air in stores have also contributed to stronger sales in electronics.

“WMT [is] ready for Holiday, with earlier savings this year,” stated BofA, adding that the company is launching deals earlier than ever, starting on October 8 for Walmart+ members.

BofA also said Walmart’s focus is on budget-friendly options, including its “inflation-free” holiday meals program.