JPMorgan analysts upgraded shares of Walmart (NYSE:WMT) to Overweight from Neutral in a note Monday, lifting its price target for the stock to $81 per share from $66.
The bank said it believes the stock adds a strong balance of defense and offense on both the top and bottom lines in a soft (to softening) consumer backdrop with a highly uncertain second half of 2024 ahead.
JPMorgan highlighted US topline "tailwinds" for WMT, including a highly value-oriented consumer, the prospect for modest grocery reflation, and persistent general merchandise share gains.
In addition, analysts feel there is an under-appreciated inflection in Walmart's profitability in its international business.
Overall, JPMorgan feels WMT's "estimates remain beatable while there is the potential for an uptick in the multiple" as they expect the company "to go on a multi-year double-digit EPS growth algo given market share gains, rising alternative profit pool benefits, and International segment profit inflection."