BUZZ-Street View: Walmart positioned as strong tariff hedge with strategic edge

Reuters
05-16
BUZZ-Street View: Walmart positioned as strong tariff hedge with strategic edge

** Walmart WMT.N will have to start raising prices later this month due to high cost of tariffs, executives said on Thursday, in a clear signal that U.S. President Donald Trump's trade war is filtering through to the American economy

** Median PT of 44 brokerages covering the stock is $108 - data compiled by LSEG

FORMULA FOR RETAIL STRENGTH

** Morgan Stanley ("overweight", PT: $115) views co's outlook as cautious due to economic and trade uncertainties but believes strong consumer demand and co’s internal strengths could lead to better-than-expected results, as seen in past two years

** ROTH MKM ("buy", PT: $108) sees WMT as relatively well-positioned amid tariff risks, citing its strong supplier leverage, agile logistics, and diversified revenue streams to cushion potential earnings impact

** TD Cowen ("buy", PT: $115) views WM as a resilient pick amid tariffs, citing its strategic pricing, category-specific margin control, and strong growth in Walmart+ and tech-driven efficiencies

** Truist Securities ("buy", PT: $111) believes co is well-positioned to manage tariff-related cost pressures through strategic pricing and its strong grocery mix, enabling it to maintain value leadership and gain market share despite expected price increases and potential dips in unit sales

(Reporting by Rashika Singh in Bengaluru)

((rashika.singh@thomsonreuters.com))

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