TD Cowen has named Walmart, Inc. WMT its overall "Best Stock" pick for 2024.
The Details: TD Cowen senior retail analyst Oliver Chen maintained Walmart with an Outperform rating and set a price target of $188, naming the retail giant his best stock pick for the coming year.
In an interview Wednesday on CNBC's "Squawk Box," Chen highlighted Walmart as a leader in retail technology with strategic investments in the key areas of AI, e-commerce and digital advertising.
"There's a real tug-of-war here, a revolution happening with artificial intelligence, digital advertising and marketplace models. The future is really a platform that incorporates all three of these things," the TD Cowen analyst said.
Related News: Retailers Are Rethinking Self-Checkout As Shrinkage Rises
Chen also noted that robotics and AI will be key factors for improved profitability in the future. Walmart is investing in these technologies and is well-positioned in pick-and-package heading into 2024, according to Chen.
"There will be have and have-nots with AI and others ... that will help margins in the long-term. We are modeling margins to go up 4% to 5%," he said.
The analyst also sees Walmart as an attractive investment amid uncertain economic conditions, given that food represents 60% of the retailer's goods sold.
"We see Walmart as a defensive play as well. Keep in mind, it's a grocer. We need to eat, and it's focused on value," Chen said.
WMT Price Action: According to data from Benzinga Pro, Walmart shares are up nearly 8% so far in 2023. The stock was up 0.91% at $152.74 at the time of publication.
Image: Courtesy of Walmart, Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
