According to Wells Fargo analysts, with consumer spending on t | 🚀 Robin Rocket

According to Wells Fargo analysts, with consumer spending on the rise, essential goods companies are attractive, in particular Walmart, which is undervalued.

Walmart $WMT is an American company that operates the world's largest wholesale and retail chain.
Target price from Wells Fargo - $165, upside potential +11%.

The main reasons for the purchase:

• Undervalued by the market. Walmart has been losing ground to competitors since the start of the pandemic. WMT shares have declined since the beginning of the year, while rivals Target, Kroger, Dollar General and Home Depot have already posted double-digit gains. Analysts believe Walmart's undervaluation will be the main reason for the company's growth in value.

• Normalization of life. During the pandemic, Walmart lost its share of the consumer goods segment. Local grocery stores took the lead as shoppers preferred convenience, quality, and a wide variety of choices over cost. Analysts believe that with a return to normal daily life, Walmart will regain some of the market.

• Increased customer income. The near-spent funds received from stimulus payments during the pandemic and the rise in prices for consumer goods are discouraging Walmart. However, tax breaks for people with children and salary increases should support buyers.

• Readiness for inflation. Walmart is well placed to combat inflationary pressures due to its scale and ability to influence pricing.

• New projects. The company's innovative projects, such as its own subscription service Walmart +, private clinics and fintech startups, provide additional opportunities to increase the company's value.