Market Overview

Walmart Once Again Positioned To Take Market Share, Analyst Initiates At Outperform

Share:
Walmart Once Again Positioned To Take Market Share, Analyst Initiates At Outperform

Wal-Mart Stores Inc (NYSE: WMT) isn't going to fall victim to Amazon.com, Inc. (NASDAQ: AMZN)'s growing dominance, at least according to analysts at Oppenheimer who initiate coverage of Wal-Mart's stock with an Outperform rating and $90 price target. In fact, according to the firm's Rupesh Parikh, the world's biggest retailer is "fresher than it's been in years."

Walmart is in the early stages of developing what could prove to be a "model" omni-channel structure, the analyst explained. For instance, the acquisition of Jet.com is just one of many "meaningful step forward" to solidify its status a "proven industry innovator" with many "unique capabilities." So far, there are early encouraging signs of growth in the online channel as gross merchandise volume accelerated to 69 percent on a year-over-year basis.

tipranks.png

Meanwhile, Walmart isn't neglecting its physical stores and has many initiatives ahead to spur growth, including:

    1. Online grocery shopping and collect in store.
    2. Two-day shipping with a $35 minimum from stores.
    3. Home delivery experiments.
    4. Also, improving food inflation trends could help boost top-line growth.

Finally, the entrance of the Germany-based budget grocery chain Lidl to the U.S. market shouldn't cause investors to worry. Walmart was able to respond very aggressively to sustain its market position through pricing and merchandising fronts.

"In our view, WMT, more than many other leading chains, now recognizes an opportunity to leverage the key attributes that fuel its dominance in physical retail, in the digital world and increasingly go 'toe to toe' with eCommerce leaders such as amazon.com," the analyst wrote.

Related Links:

Amazon Can't Put All Grocery Stores Out Of Business

Dean Foods Caught In The Crossfire Of Walmart, Kroger's 'Price War'

Latest Ratings for WMT

DateFirmActionFromTo
Nov 2020Morgan StanleyMaintainsOverweight
Nov 2020Raymond JamesMaintainsOutperform
Nov 2020Deutsche BankMaintainsBuy

View More Analyst Ratings for WMT
View the Latest Analyst Ratings

 

Related Articles (WMT)

View Comments and Join the Discussion!

Posted-In: Amazon Versus Walmart ecommerce GroceryAnalyst Color Long Ideas Initiation Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
HYMCBMO CapitalInitiates Coverage On
DEMorgan StanleyMaintains335.0
SBNYRaymond JamesMaintains138.0
CORTHC Wainwright & Co.Maintains32.0
CYBBFCitigroupDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com