Deutsche Bank raised Walmart (WMT.US) to “buy”: the target price jumped to $136, and the inflationary environment led to a “smooth wind” of share expansion

The Zhitong Finance App learned that the Walmart (WMT.US) stock price attracted investors' attention. Previously, Deutsche Bank raised the retailer's rating from “neutral” to “buy” and raised the target price from 113 US dollars to 136 US dollars. According to reports, the bank believes that Walmart shares face a more favorable allocation environment as they move towards 2027. Deutsche Bank said that the current inflationary environment should reinforce Walmart's value proposition and accelerate the increase in its market share.

The bank also believes that as Walmart's high-margin business grows faster than its core retail business, there is room for improvement in its profit margin.

Walmart's stock price rose 2.3% before the market on Thursday to about $118.77; the stock has accumulated an increase of more than 8% over the past week.

Out of 43 analysts covering Walmart, 37 gave a “buy” or “strong buy” rating, according to Koyfin data.

Walmart expands medical and paid leave benefits for US employees

According to another report, Walmart announced new US employee benefits on October 13 before the 2027 benefit year. The adjustments include: a zero-dollar prescription drug tier covering more than 250 generic, brand-name, and specialty medications, including some insulin and inhalers; and free specialist assessments for certain rare diseases under most medical plans.

The rare disease program covers multiple sclerosis, Parkinson's disease, and amyotrophic lateral sclerosis (ALS), and eligible employees and families can receive in-person specialist assessments and treatment reviews free of charge. These benefit plans come into effect on January 1, 2027.

Walmart will also introduce up to 12 weeks of dedicated paid neonatal intensive care unit (NICU) leave for eligible employees starting November 17, 2026. It is suitable for newborns who have been admitted to the NICU within 28 days of birth and are being hospitalized.

“We're adding more ways to help you and your family live better through comprehensive and affordable health care and benefits,” Chief Human Resources Officer Donna Morris wrote in a letter to employees.

On Stocktwits, retail sentiment on Walmart shares was “bearish” and the volume of news was “high” as of press release. Walmart was one of the hottest stocks on Stocktwits at the time.

A bullish user said that Walmart has risen from $112 to $114, and said the stock could rise to $116 to $120 next, adding, “Take your time.”

Another user said that Walmart and Berkshire Hathaway Class B Shares (BRK.B) are among the few stocks in the bullish zone.

Walmart shares are up more than 4% year to date.