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Jefferies analyst Stephanie Wissink says the giant giant Walmart + sales service and TikTok’s potential ownership of a digital platform could boost customer loyalty.
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Walmart
2020 was very good at stocks, but shares have gone up just 0.5% in 2021 so far, as investors question whether the sales giant can sustain the trend. Jefferies argues that the sales giant is just not starting.
Analyst Stephanie Wissink confirmed Walmart’s Buy rating (ticker: WMT) and $ 177 price target. She writes that 2021 is “making a transformative year,” and there is growing support for the blue-position target. air of $ 200 as the value of the company makes up.
She emphasizes “Walmart’s ability to get close to customers and the benefits of its scale into a more complete ecosystem with omnichannel adoption,” while Walmart + membership service and ownership TikTok which could strengthen the digital platform and customer loyalty.
While many buyers still choose to shop in, the convenience of new services such as roadside construction is clear, which is a boon for Walmart. Not only does their network of stores put them close to many Americans, but construction – which doesn’t require a shipping organization about a mile to the last mile – is edge-friendly than traditional e-commerce.
Wissink argues that the company’s investments in labor and source-based performance meant they were able to move to an online and omnichannel model during the Covid-19 pandemic, laying the foundation for growth continuous and better profit. She’s optimistic about the company’s growing third-party market, as well as the way Walmart can bring Walmart + into more frequent consumer purchases.
While Walmart TikTok’s contract is pending, it believes it is an attractive platform for the company to “take advantage of social commerce,” including buying through social media companies, a channel that expanding rapidly and growing twice as fast as total e-commerce sales. Wissink also believes that Walmart can capture grocery market share as it develops investments and normalizes buying patterns.
Walmart is up 0.1% to $ 145.03 in recent trading. Wissink’s agreement on the company’s omnichannel capability comes weeks after e-commerce leader Marc Lore left, which many believe with the success of his strategy.
Write to Teresa Rivas at [email protected]