Walmart upgraded on revenue growth from new shoppers gained during coronavirus pandemic - MarketWatch

Walmart Inc. WMT, +1.32% was upgraded to buy from neutral at UBS as analysts expect the retail giant will continue to see revenue gains from the new customers it acquired during the coronavirus pandemic. UBS raised its price target to $135 from $130. The research group's proprietary data shows that it is a primary shopping destination, and in the coming years, analysts expect Walmart will roll out automation technologies "to drive game-changing efficiency," UBS said. "Our thesis is that Walmart is entering an era of amplified earnings growth driven by an enhanced productivity loop, increased e-commerce scale, and accelerated technology deployment." UBS forecasts sustained 25% e-commerce growth for Walmart U.S. and 3% same-store sales growth. The FactSet consensus for fiscal second-quarter domestic same-store sales growth is 5.3%. Walmart stock is up 1.2% in Monday trading, and up 2% for the year to date. The Dow Jones Industrial Average DJIA, +0.38% has fallen 9.3% for 2020 so far.

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