Credit Suisse bumps its price target on Walmart stock ahead of earnings

August 11, 2023 11:08 AM PDT | By Invezz

Credit Suisse bumps its price target on Walmart stock ahead of earnings — Image source: Invezz

Walmart stock has upside to $180

Karen Short reiterated her outperform rating on the big box retailer today and raised her price target to $180 that signals a 13% upside from here.

The analyst likes Walmart stock primarily because she sees it as suitable for the current macroeconomic backdrop. Her research note reads:

Walmart continues to exhibit solid defensive characteristics, given its value-driven business in the wake of a volatile consumer backdrop and slowing but elevated inflationary headwinds on the consumer.

The retail giant is scheduled to report its Q2 results on August 17^th. Consensus is for it to earn $1.67 a share versus $1.77 per share a year ago.

Walmart will continue to grow sales

Short forecasts continued sales momentum for the multinational on the back of strength in its private label products.

The Credit Suisse analyst is bullish on Walmart stock also because she expects the retailer to further improve share in grocery. Its health and wellness unit will likely benefit from the rising focus on weight-loss drugs as well.

From profitability standpoint, WMT should have benefitted from lapping excess markdowns from last year, supply chain productivity initiatives, and business mix which should start to contribute in Q2.

The news arrives only days after Walmart said it will spend another $1.4 billion to expand its footprint in India as Invezz reported here. Its shares currently pay a dividend yield of 1.41%.

The post Credit Suisse bumps its price target on Walmart stock ahead of earnings appeared first on Invezz.

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