JPMorgan analysts upgraded Walmart (NYSE:WMT) shares to Overweight from Neutral, raising their price target to $81 from $66 on the stock.

The bank argues that Walmart offers a solid combination of defensive and offensive strengths in both revenue and profit amidst a challenging consumer environment and an uncertain second half of 2024.

JPMorgan highlighted several positive factors for Walmart in the U.S. market, including a strong appeal to value-conscious consumers, the potential for modest inflation in grocery prices, and ongoing gains in general merchandise market share. Additionally, JPMorgan sees an underappreciated improvement in Walmart's international profitability.

Overall, JPMorgan believes Walmart's earnings estimates are achievable and anticipates an increase in the stock's valuation. They expect Walmart to achieve multi-year double-digit EPS growth driven by market share gains, benefits from alternative profit streams, and improved profitability in its international segment.