Deutsche Bank raised its Walmart target to $136 from $113 and moved its rating from Hold to Buy on Oct. 15, pointing to the retailer’s appeal as inflation persists. The decision focused on consumer response to inflation and the retailer’s profit outlook.
Analyst Katai said Walmart’s emphasis on low prices may stand out more to shoppers if inflation continues. Katai also cited automation and expansion in higher-margin operations as potential supports for profit growth.
The retailer has broadened its online marketplace and given delivery priority while moving technology deeper into its retail model. It has also introduced Sparky, an AI-powered shopping assistant.
