Analysts at Bank of America reiterated their “Buy” rating on Walmart Inc. (NYSE: WMT), raising no doubts about the retail behemoth’s enduring value proposition, omni‑channel expansion, and growing profitability engines.
1. Dominant Convenience and Same‑Day Delivery
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Household Reach: Walmart’s same‑day service now covers 76% of U.S. households and is on track to hit 95% by year‑end.
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Speed Innovations: From curbside pickup to last‑mile drone drops, Walmart continues to shrink delivery windows—a key moat against both pure‑play e‑tailers and grocery chains.
2. E‑Commerce Powerhouse
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20%+ Growth: Online sales are accelerating at over 20% annually, contributing to half of total net sales growth.
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AI & Automation: The “Sparky” AI assistant and expanded fulfillment‑center robotics have improved conversion and cut fulfillment costs, driving margin resilience.
3. International Momentum
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Sam’s Club China: Average delivery times down to 46 minutes.
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Flipkart (India): A record 3‑minute delivery service highlighted as a global benchmark in BofA’s note.
4. Margin Expansion from New Verticals
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Digital Advertising: Higher‑margin ad sales are scaling rapidly to capitalize on Walmart’s 150 million weekly shoppers.
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Third‑Party Marketplace: Seller fees and value‑added services are lifting gross merchandise volume without capital‑intensive inventory.
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Wage Investments: Targeted wage hikes have improved retention and service quality, offset by productivity gains from automation.
Track the full distribution of Walmart’s analyst price targets: Analyst Price Targets for WMT
5. Valuation and Risk Profile
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$120 Price Target: Implies a 41× multiple on BofA’s FY27 EPS estimate of $2.90, reflecting Walmart’s sticky comps and robust free‑cash flow generation.
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Risks: Potential margin pressure from pharmacy reimbursement headwinds and food‑price deflation. However, scale, supply‑chain efficiency, and tech investments underpin BofA’s conviction.
Review Walmart’s credit rating and key financial metrics: Walmart Credit & Company Profile
