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Tigress Financial raises Walmart target to $115, maintains Buy

Published 2024-12-13, 03:52 p/m
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On Friday, Tigress Financial Partners issued an update on Walmart Inc. (NYSE:WMT), lifting the 12-month price target to $115 from the previous figure. The firm reiterated its Buy rating on the retail giant, citing a robust growth trajectory and market share gains. According to InvestingPro data, Walmart's stock is trading near its 52-week high of $96.18, with an impressive year-to-date return of over 80%. Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value.

The analyst noted that Walmart continues to attract customers across all income levels, with significant progress in e-commerce and advertising initiatives contributing to growth and market share expansion. The company's success is particularly pronounced among upper-income households, with those earning over $100K representing 75% of its market share gains. This success is reflected in Walmart's robust financial performance, with annual revenue reaching $673.8 billion and maintaining dividend payments for an impressive 52 consecutive years.

Walmart's partnership with American Express (NYSE:AXP) offers Platinum Card holders complimentary Walmart+ memberships, further appealing to higher-income clientele. The retailer's aggressive pricing strategy, leveraging AI investments, has led to little comparable inflation in the U.S., and general merchandise prices have seen a reduction of over 4%.

Walmart's technological advancements include a personal shopping assistant currently in beta testing and the deployment of a general AI tool, My Assistant, to all U.S. home office associates and those in 13 additional countries. This tool aids over 50K associates in accessing information and performing time-saving actions.

Further bolstering its competitive edge, Walmart Data Ventures is set to launch its platform in Canada. The company is also expanding its marketplace offerings, with a focus on emerging categories such as apparel, home decor, and automotive supplies. InvestingPro analysis reveals the company maintains a GOOD financial health score, operating with moderate debt levels while delivering strong returns. For deeper insights into Walmart's financial metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The analyst emphasized that Walmart's reengineered supply chain and omnichannel network, powered by data and automation, will enhance inventory accuracy and flow. These improvements are expected to drive business performance, return on capital, and economic profit, alongside shareholder value through dividends and share repurchases. The new price target suggests a total return, including dividends, of over 20% from current levels.

In other recent news, Walmart Inc. continues to make headlines with its strong performance and strategic moves. The retail giant's third-quarter consolidated revenues increased by 5.5%, and global eCommerce sales rose by 27%, demonstrating the company's robust financial health. Walmart's recent acquisition of consumer electronics company VIZIO for $2.3 billion, aimed at enhancing its advertising business, Walmart Connect, has also drawn attention.

Walmart's strides in automating e-commerce fulfillment, scaling last-mile delivery efficiencies, and expanding high-margin alternative revenue streams were highlighted as key drivers for the anticipated e-commerce profitability. The company's efforts to refine its e-commerce business model are seen as a significant factor in its ability to compete effectively in the rapidly evolving retail landscape.

In addition to these developments, Walmart and Amazon.com (NASDAQ:AMZN) reported record-breaking sales during the holiday season, outperforming competitors like Target (NYSE:TGT) and Best Buy (NYSE:BBY). Kathryn McLay, Walmart's Executive Vice President, President, and CEO of Walmart International, established a prearranged stock trading plan, selling 4,000 shares of Walmart common stock monthly from March 2025 through December 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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