Walmart: shares benefit from UBS optimism

(CercleFinance.com) - Walmart shares were the second-biggest gainer on the Dow Jones index on Tuesday morning, buoyed by UBS, which raised its TP for the stock.


In a note released in the morning, UBS said it expects a "solid start to the year" from the supermarket chain, which it believes should have benefited from favorable commercial momentum.

While it is true that the stock has been the object of definite interest and market support for some quarters, we believe that the forthcoming publication will serve to reinforce this well-deserved respect, it explained.

From UBS' point of view, the results to be unveiled next week should 'tick all the boxes' at a time when household consumption is beginning to weaken.

In particular, the analyst expects market share gains and progress in the evolution of its business model, more focused on automation and new sources of revenue, which should boost the share price in the short term.

UBS, which has a Buy recommendation on the stock, has therefore raised its TP from $63 to $69, representing upside potential of around 15%.


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