Walmart (WMT) Coverage Reinstated With Bullish Outlook from BofA

Walmart Inc. (NASDAQ:WMT) is included among the 13 Best March Dividend Stocks to Buy.

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On February 27, BofA reinstated coverage of Walmart Inc. (NASDAQ:WMT) with a Buy rating. The firm set a price target of $150 on the stock. The analyst said Walmart continues to gain market share, especially among higher-income consumers, helped by faster delivery options. At the same time, the company remains competitive with lower-income shoppers by maintaining its everyday low pricing strategy. The analyst noted that steady sales growth, along with faster profit expansion, could lead to upward revisions in earnings estimates. This momentum, in the firm’s view, could also allow the stock’s valuation multiple to “grind higher.”

A day earlier, on February 26, Reuters reported that Walmart agreed to pay $100 million to settle claims brought by the U.S. Federal Trade Commission (FTC) and 11 states. Regulators alleged that Walmart misled delivery drivers about their expected earnings under its Spark Driver program. According to regulators, the company claimed that all customer tips would go directly to drivers. They also said Walmart presented earnings and tip estimates that were higher than what drivers actually received. This led to drivers losing tens of millions of dollars in expected income.

As part of the settlement, Walmart agreed not to misrepresent driver earnings going forward. The company said it has already compensated affected drivers and will continue making payments where necessary. Walmart also said it is taking steps to improve transparency and fairness in its platform. The FTC said protecting gig workers remains a priority and urged companies to provide accurate earnings information and maintain proper compliance systems.

Walmart Inc. (NASDAQ:WMT) operates as a technology-powered omnichannel retailer. The company runs retail stores, wholesale clubs, eCommerce websites, and mobile applications, serving customers across multiple channels.

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