Most analysts have a neutral outlook
Walmart (WMT) has quickly transformed its business in the face of increased competition from Amazon (AMZN). The company is matching Amazon on every front, be it pricing, merchandise, or services, and offering more convenience to shoppers. The company’s omnichannel approach seems to be working well, as reflected by its continued sales and earnings improvement.
Walmart has grown its e-commerce business significantly in the past couple of years and continues to do so to remain competitive. The company’s transformation was welcomed by investors, as suggested by its stock’s strength last year. The e-commerce business has emerged as a key catalyst for retailers, and any slowdown in digital sales may not sit well with analysts or investors.
Walmart is facing increased competition in the domestic market, which analysts believe could hurt its e-commerce sales. Amazon has continued to expand its grocery business, while Target (TGT) is matching Walmart’s services by offering curbside pickup and doorstep delivery. Costco (COST) and Kroger (KR) are also strengthening their digital offerings by partnering with Instacart to provide grocery delivery services. Given the competitive landscape, most analysts have maintained a neutral outlook on Walmart stock.
Ratings and target price
Of the 30 analysts covering Walmart stock, 18 recommend “hold,” and 12 recommend “buy.” Their consensus target price of $94.44 on Walmart stock implies a 5.3% upside to its closing price of $89.67 on August 6.