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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuSticky inflation will make Walmart more attractive to consumers and give shares a boost, according to Deutsche Bank. The investment bank upgraded the retail giant to buy from hold. It also hiked its price target on shares to $136 from $113, suggesting 17% upside from Wednesday’s close. “The current inflationary environment should reinforce WMT’s value proposition and support accelerated share gains, while we think investors are starting to increasingly look beyond the headline pressure on U.S. comp,” analyst Krisztina Katai said Thursday in a note to clients. “At the same time, we expect incremental margins to improve as higher-margin businesses continue to outgrow core retail and as automation benefits increasingly flow through the [profits and losses].” WMT YTD mountain WMT year to date She added that Walmart’s market share is likely to accelerate. The retailer has courted more customers by leaning further into e-commerce, expanding its online marketplace and prioritizing its delivery service. That evolution from “traditional retailer to technology-led marketplace” should also translate to greater gains for the stock, according to Deutsche Bank. Walmart has also launched an artificial intelligence-powered shopping assistant called Sparky, which should boost its sales. The company reported that customers’ baskets are roughly 40% larger when they use the technology, per Katai. Deutsche Bank’s call falls in line with consensus on the Street. Of the 44 analysts covering Walmart, 39 have a buy or strong buy rating on the stock, while five have a hold on it, LSEG data shows. Shares are up more than 4% year to date.Read More