In anticipation of Walmart's (NYSE:WMT) upcoming earnings release on August 17, Evercore ISI has added the retail giant to its Tactical Outperform List.
This move comes as Evercore ISI identifies several positive indicators that suggest Walmart is well-positioned for growth and market outperformance.
Among other things, Evercore ISI is optimistic about Walmart's potential for solid performance in the coming quarters. The analysis focuses on key factors such as traffic, share capture, and margin recovery.
The analysts expect these metrics to drive a positive outcome in earnings, referred to as a "beat and raise" scenario. Evercore ISI has an "Outperform" rating and a target price of $180 per share.
“With traffic and margin improvement, we see the stock at least holding its 20% premium and pushing $170. It’s the stickiness of the customer traffic that gives us confidence that the turn at Walmart is for real,” the analysts wrote in a note.
At the same time, they placed BJ's Wholesale Club (NYSE:BJ) on the Underperform Tactical Trading List with an In-Line rating and a target price of $69 per share. BJ is due to report on August 23.
Walmart shares are up nearly 1% in premarket Monday.