BofA Sets $150 Target on Walmart; Company to Pay $100M Settlement
Bank of America reinstated coverage on Walmart with a buy rating and $150 price target, citing market share gains among higher-income consumers and faster profit expansion supporting earnings upgrades. Walmart also agreed to pay $100 million to settle FTC and state claims over misrepresenting Spark Driver earnings, pledging improved transparency.
1. Coverage Reinstatement and Bullish Outlook
On February 27, Bank of America reinstated coverage on Walmart with a buy rating and set a $150 price target, citing the retailer’s expanding market share among higher-income consumers driven by faster delivery options. The analyst highlighted Walmart’s ability to maintain everyday low pricing while accelerating profit growth, suggesting upward revisions to earnings estimates and higher valuation multiples.
2. $100M Settlement Over Spark Driver Earnings Claims
Walmart agreed to pay $100 million to resolve claims from the Federal Trade Commission and 11 states that it misled Spark Driver participants about tip earnings, compensating affected drivers for shortfalls and agreeing not to misrepresent future driver pay. The company will enhance transparency and compliance systems to ensure accurate earnings disclosures for gig workers.