TD Cowen has named Walmart, Inc. WMT its overall "Best Stock" pick for 2024.
The Details: TD Cowen senior retail analyst Oliver Chen maintained Walmart with an Outperform rating and set a price target of $188, naming the retail giant his best stock pick for the coming year.
In an interview Wednesday on CNBC's "Squawk Box," Chen highlighted Walmart as a leader in retail technology with strategic investments in the key areas of AI, e-commerce and digital advertising.
"There's a real tug-of-war here, a revolution happening with artificial intelligence, digital advertising and marketplace models. The future is really a platform that incorporates all three of these things," the TD Cowen analyst said.
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Chen also noted that robotics and AI will be key factors for improved profitability in the future. Walmart is investing in these technologies and is well-positioned in pick-and-package heading into 2024, according to Chen.
"There will be have and have-nots with AI and others ... that will help margins in the long-term. We are modeling margins to go up 4% to 5%," he said.
The analyst also sees Walmart as an attractive investment amid uncertain economic conditions, given that food represents 60% of the retailer's goods sold.
"We see Walmart as a defensive play as well. Keep in mind, it's a grocer. We need to eat, and it's focused on value," Chen said.
WMT Price Action: According to data from Benzinga Pro, Walmart shares are up nearly 8% so far in 2023. The stock was up 0.91% at $152.74 at the time of publication.
Image: Courtesy of Walmart, Inc.
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