Walmart shares should be worth $160: Evercore ISI
Walmart Shares Should Be Worth $160: Evercore ISI Walmart, the world's largest retailer, has been a staple in the American economy for decades. With over 11,000 stores worldwide and a market capitalization of over $400 billion, Walmart is a behemoth in the retail industry. However, according to a recent report by Evercore ISI, Walmart's shares are undervalued and should be worth $160. The report cites several reasons for this valuation, including Walmart's strong financials, its ability to adapt to changing consumer trends, and its dominance in the e-commerce space. Walmart's revenue has grown consistently over the past few years, with a 6.7% increase in 2020 alone. The company's net income has also been on the rise, with a 45% increase in 2020 compared to the previous year. Walmart has also been able to adapt to changing consumer trends, particularly in the wake of the COVID-19 pandemic. The company has invested heavily in its e-commerce capabilities, with online sales growing by 79% in the first quarter of 2021. Walmart has also expanded its grocery delivery and pickup services, which have become increasingly popular with consumers. In addition to its strong financials and ability to adapt, Walmart's dominance in the e-commerce space is another reason why its shares should be worth $160. The company's acquisition of in 2016 and its partnership with Shopify in 2020 have helped Walmart expand its online presence and compete with Amazon. Walmart's e-commerce sales are expected to reach $100 billion by 2024, which would make it the second-largest e-commerce player in the U.S. after Amazon. Despite these positive factors, Walmart's shares are currently trading at around $140, which Evercore ISI believes is undervalued. The report notes that Walmart's price-to-earnings ratio is lower than its peers, indicating that the market is not fully valuing the company's potential. Evercore ISI's $160 price target represents a 14% upside from Walmart's current share price. In conclusion, Walmart's strong financials, ability to adapt to changing consumer trends, and dominance in the e-commerce space make it a valuable investment opportunity. Evercore ISI's $160 price target is a reflection of Walmart's potential and should be considered by investors looking for a solid long-term investment.