Deutsche Bank Upgrades Walmart to Buy and Lifts Its Target to $136

Deutsche Bank upgraded Walmart to buy from hold Thursday, Oct. 15, and raised its price target to $136 from $113.

The revised target stood 17% above Wednesday’s close. “The current inflationary environment should reinforce WMT’s value proposition,” Katai said. Katai said investors are “starting to increasingly look beyond the headline pressure on U.S. comp.”

Katai said incremental margins should improve as higher-margin businesses “continue to outgrow core retail,” with automation adding to profits.

Walmart has expanded its online marketplace and prioritized delivery as it shifts toward a technology-led retail model.

Walmart has launched Sparky, an artificial intelligence-powered shopping assistant. Baskets among customers who use Sparky are about 40% larger.

Among 44 analysts covering Walmart, 39 rated the stock buy or strong buy and five rated it hold. Deutsche Bank’s upgrade matches that overall rating split. Walmart shares had gained more than 4% since the start of the year as of Oct. 15.