Walmart Unveils Prepaid Shipment Program; Analyst Sets $155 Price Target
WMT•Walmart launched the Prepaid Consolidation Program, consolidating smaller supplier shipments at three automated centers before forwarding pallets to 42 regional distribution hubs to cut logistics costs and boost in-stock availability. Analyst Ivan Feinseth raised Walmart’s price target to $155, implying a 34.6% upside as digital commerce and virtual healthcare expand.
1. Launch of Prepaid Consolidation Program
Walmart’s new Prepaid Consolidation Program allows prepaid suppliers to merge multiple small orders into a single truckload at one of three automated consolidation centers before shipping direct to 42 regional distribution centers. By avoiding less-than-truckload carriers, the process is set to lower transportation expenses, shorten lead times and increase shelf availability across its U.S. network.
2. Analyst Raises Price Target to $155
Tigress Financial’s Ivan Feinseth boosted Walmart’s price target to $155, forecasting a potential 34.6% gain based on the retailer’s shift toward higher-margin digital commerce channels and its partnership with Teladoc Health for virtual healthcare services. Despite a recent stock pullback, the new valuation underscores confidence in Walmart’s evolving revenue mix and cost efficiencies.
