Walmart stock price forecast: TD Cowen sees a 25% upside

The recent pullback in shares of Walmart Inc (NYSE: WMT) is an opportunity to invest in a quality name at a discount, says Oliver Chen – a TD Cowen analyst.

Walmart stock could climb to $188

Chen reiterated his “outperform” rating on the retail behemoth this morning and said its shares could climb to $188 – up roughly 25% from here.

The analyst dubbed Walmart stock a retail-tech leader and added it to his list of best ideas for 2024 on Tuesday. His research note reads:

Last month, Walmart Inc reported market-beating results for its third financial quarter.

Why else is Chen bullish on Walmart stock?

Oliver Chen likes the chain of hypermarkets because it continues to add members to Walmart Plus at an impressive pace.

The analyst is bullish on Walmart Inc also because he expects the retail behemoth to sustain growth in digital advertising at a double-digit percentage.

The New York-listed firm is seeing continued momentum in grocery category and health & wellness – and it’s wining higher income traffic while keeping its share in lower and middle incomes as well. These factors also contributed to Chen’s constructive view on $WMT.

Note that Walmart stock currently pays a dividend yield of 1.51% which makes up for another great reason to have it in your investment portfolio.