In Tuesday's premarket, Walmart shares rose 1.7 % after Goldman Sachs upgraded the stock to a 'conviction buy with a $196 price target.
Walmart's new price objective, set by analyst Kate McShane, is more than 38% higher than the stock's Monday finish of $141.68.
The store was one of the strongest stories at Goldman Sachs' 28th annual retail conference in September, according to the analyst. She credited this to the company's improved capacity to generate EBIT, as well as continuous investments, which she expects to pay off in the coming year.
Walmart has profited from a wave of hyper-stimulated consumer demand, fueled by large tax breaks for consumers and ultra-low loan rates, which have prompted stockpiling of both basic and higher-priced household products at various points throughout the pandemic.
While pandemic-fuelled purchasing has subsided, some new consumer behaviors have persisted, and purchases of some commodities have risen.