Walmart(US:WMT) Zhi Tong Cai Jing·2025-06-09 09:05Core Viewpoint - Walmart hosted its 2025 "Employee Week" event on June 5 and 6, with store tours and management meetings, leading Goldman Sachs to issue a "Buy" rating with a target price of $101 for Walmart (WMT.US) [1] Financial Summary - Current Price: $97.47, Target Price: $101.00, Upside: 3.6% [2] - Market Cap: $780.4 billion, Enterprise Value: $816.2 billion [2] - Revenue Forecasts: - 2025: $680.99 billion - 2026: $706.10 billion - 2027: $735.97 billion - 2028: $767.74 billion [2] - EBITDA Forecasts: - 2025: $42.48 billion - 2026: $44.79 billion - 2027: $49.07 billion - 2028: $53.83 billion [2] - EBIT Forecasts: - 2025: $29.50 billion - 2026: $30.71 billion - 2027: $34.49 billion - 2028: $38.63 billion [2] - Dividend Yield: 1.1% [2] Business Growth Drivers - The grocery segment has been a key growth driver, with a 70% increase over the past 9-10 years and a 50% increase since 2020 [3] - Walmart plans to add 150 new items to its Better Goods brand, focusing on high-quality products, with 70% priced below $5 [3] - The company is capturing market share from both retailers and restaurants [3] Digital Business Insights - One-third of Walmart's orders are for "fast delivery" within three hours, indicating a shift towards delivery services over in-store pickup [4] Consumer Impact of Tariffs - Consumers have not significantly felt the impact of tariffs, with no signs of supply chain congestion reported by Walmart [5] Product Variety Enhancement - Walmart is improving the quality of its everyday products and negotiating with higher-quality brands, despite challenges due to consumer spending constraints [6] - The company is enhancing its clothing and home goods categories, with notable changes including the introduction of domestic brands and a focus on a department store atmosphere [6][7] Advertising and Revenue Sources - Walmart's advertising revenue is still low compared to Amazon, with a focus on promoting unsold products through VIZlO [8] Digital Label Implementation - By 2026, Walmart plans to roll out digital labels to all stores, which will help improve inventory turnover and display both discount and regular prices [9] Pharmacy Business Performance - The pharmacy segment is performing well, with GLP-1 drugs contributing 100 basis points to overall performance, and the company has launched a pharmacy delivery service [10] Sam's Club Growth - Sam's Club has seen a 7% increase in membership fee income and a 160% growth in delivery services, with 35% of members using the "Scan & Go" service [11]