Walmart Inc. (NYSE:WMT) shares are trading higher Thursday after Deutsche Bank upgraded the stock to Buy from Hold and raised its price target to $136 from $113, citing a more favorable setup heading into 2027.
- Walmart stock is among today’s top performers. What’s fueling WMT momentum?
Deutsche Bank Says Inflation Reinforces Walmart’s Value Proposition
According to Investing.com, analyst Krisztina Katai argued that the persistent inflationary environment should reinforce Walmart’s value proposition and drive faster market-share gains. She expects incremental margins to improve as higher-margin businesses, including advertising, marketplace and membership, outgrow core retail and as automation benefits flow through. Katai said investors are starting to look past the headline pressure on U.S. comparable sales. The new target implies about 17% upside from Wednesday’s close, according to CNBC.
“We see pricing tailwinds building, market share accelerating, and WMT’s flywheel strengthening,” Katai wrote. She added that greater disclosure around gross merchandise volume could underscore Walmart’s evolution from a traditional retailer to a technology-led marketplace. She also pointed to early results from Sparky, Walmart’s AI shopping assistant, which show baskets about 40% larger and higher conversion than traditional shopping journeys. The upgrade followed investor meetings in New York with Walmart CFO John David Rainey and the investor relations team.
A Rotation Into Staples and a Benefits Expansion Add Context
The upgrade lands after momentum built in the prior session, when hotter-than-expected September inflation data prompted investors to rotate out of growth and technology stocks and into consumer staples. Costco and Target also edged higher that day, according to Investing.com. Walmart also announced October 13 that it will cover more than 250 prescription drugs, including GLP-1s and insulin, at no cost to eligible employees beginning in 2027. Shares are up more than 8% over the past week, and Koyfin shows 37 of the 43 analysts covering the stock rate it Buy or Strong Buy.
Walmart Shares Edge Higher
WMT Price Action: At the time of publication, Walmart shares are trading 2.79% higher at $119.40, according to data from Benzinga Pro.
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