© Reuters. Walmart (WMT) pops as Evercore ISI upgrades on better outlook for traffic, margins
By Senad Karaahmetovic
Evercore ISI analysts upgraded shares of Walmart (NYSE:) to Outperform from In Line with the price target going to $160 per share from $145.
The analysts see the potential for traffic and margins to expand over the next two years, a result of the “management’s diligent work to pivot the business to omnichannel, divest non-core assets, and invest in productivity.”
“The traffic turn appears to be building, and with consumers across the demographic spectrum making wallet allocation choices after several years of record nominal retail spending, Walmart is poised to regain share,” they wrote in an upgrade note.
Still, the analysts caution investors that the upcoming April Investor Day will disappoint, especially if “management tries to bludgeon the Street to their guidance range.”
“That said, with traffic momentum and margin expansion likely amidst a decelerating Retail world we like Walmart’s scale, balance sheet and stability,” they added.
WMT shares are up 1.6% in premarket Thursday.
