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Investing.com — Walmart (NYSE:WMT)’s ecommerce efforts as a result of the coronavirus will continue paying dividends, Jefferies (NYSE:JEF) said.
Shares are up 0.56% on Friday as the firm reiterated a buy rating and a $177 price target on the retailer. Walmart is currently trading around $145.
Analyst Stephanie Wissink said Walmart’s extensive physical presence and its evolving omnichannel offer margin upside, according to StreetInsider.
“WMT’s store based fulfillment and labor investments enabled the co. to further transition to e-com mode during the height of the pandemic, resulting in robust growth and significantly lower e-com losses YTD,” Wissink said in a note.
The company should show improving general merchandise mix and picking up/shipping efficiencies that will add to digital share gains and profitability, Wissink said.
The analysts raised earnings estimates on Walmart as a result.
Earnings per share for the most recent quarter came in at $1.34 compared to $1.16 a year earlier. Wissink estimates profit for the fourth quarter of 2021 at $1.53, StreetInsider said.
Shares are up about 25% over the past 12 months.
