Walmart stock: Deutsche Bank gets bullish amid pricing tailwinds

Investing.com -- Deutsche Bank lifted its rating for Walmart to Buy and raised its price target to $136 from $113 in a note on Thursday, saying the setup into 2027 looks more favorable.

Analyst Krisztina Katai told investors that the current inflationary environment should reinforce Walmart’s value proposition and support faster market share gains.

She also believes investors are starting to look beyond headline pressure on U.S. comparable sales.

“We see pricing tailwinds building, market share accelerating, and WMT’s flywheel strengthening, while greater disclosure around GMV could increasingly underscore the evolution from traditional retailer to technology-led marketplace,” Katai wrote.

The upgrade followed investor meetings in New York with chief financial officer John David Rainey and the investor relations team.

Management is said to have pointed to some of the strongest food market share gains in recent years, alongside momentum in e-commerce, marketplace, advertising and membership. Consumer trends were described as stable to improving compared with three months ago.

Katai expects incremental margins to improve as higher-margin businesses outgrow core retail and automation benefits flow through.

Management was constructive on agentic commerce, viewing it as more opportunity than disruption. Early results from Sparky, Walmart’s AI shopping assistant, show baskets about 40% larger and higher conversion than traditional shopping journeys.

The company also flagged that elevated diesel costs are beginning to reach consumer prices, potentially adding 50 to 100 basis points of inflation in 2027 if current levels persist.

Original Article

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