Bank of America initiated coverage on Walmart with a Buy rating. The bank established a $150 price target for the retail giant. Walmart shares traded higher on Friday following the announcement.
Analysts noted that Walmart is capturing market share from higher-income shoppers through expanded delivery options. The company simultaneously maintains its core value proposition for lower-income consumers.
Bank of America expects previous investments to drive steady sales momentum and accelerate profit growth. The bank anticipates this outlook will support future upward revisions to earnings per share. The broader analyst consensus for Walmart currently stands at Moderate Buy.