Walmart (WMT) looks "well positioned" to manage tariffs because of its "deep" relationship with suppliers, pricing mechanism, automation, and inventory management, BofA Securities said in a Friday note.

The company also has "potential" for continued gross margin expansion as it is gaining market share due to a "significant" digital/omni-channel transformation, analyst Robert Ohmes added.

The retail store chain giant has 60% grocery sales mix and has just about 33% of total import exposure, the analyst said, but adding that tariff effect is still "uncertain" as it may pose risk towards the company's fiscal 2026 outlook and Walmart is not "immune" to it as "China tariffs at current levels would be significant cost headwind and potential source of supply disruption."

Walmart will report fiscal Q1 results on Thursday.

BofA Securities maintained its buy rating and $120 price target on Walmart's stock.

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