Walmart Maintains 'Buy' Rating as Fashion Pop-Up Stores Drive Growth
DA Davidson has maintained its 'Buy' rating on Walmart stock (NASDAQ:WMT) following an analyst's visit to the retailer's fashion pop-up store in New York City. The target price remains at $132.00, suggesting a potential upside of approximately 24% from the current price of $106.61.
According to DA Davidson, the pop-up stores are part of Walmart's strategy to elevate its fashion presence in apparel, footwear, accessories, jewelry, and beauty. The locations aim to change consumer perception and expand share of wallet and customer base.
The retailer has reported significant growth in its fashion and beauty segment, with comparable sales in this area growing at a mid-single digit rate over the past several years. Overall revenue growth of 6.2% over the last twelve months supports this momentum, contributing to Walmart's $845 billion market capitalization as a prominent player in the Consumer Staples Distribution & Retail industry.
Other notable developments include international growth, with Walmart's international division achieving a net sales increase of 7.9% in constant currency during the second quarter. The company is also expanding its contactless payment options, including Apple Pay, across all U.S. stores by the end of 2026 and will extend this to websites, apps, and fuel stations by mid-2027.