Analysts are bullish about the prospects for Walmart U.S. under new leadership after the retail giant announced that Sam’s Club head John Furner has been appointed chief executive of the Walmart division. He succeeds Greg Foran, who is staying on until January 31 before taking on the chief executive role at Air New Zealand. Furner started with Walmart as an associate in 1993 and became CEO at Sam’s Club in 2017. Walmart stock inched up 0.2% in Friday trading after the news. “We believe [the] impressive momentum at Walmart U.S. should continue, especially given that Walmart ‘sees no change in core strategy’ as a result of the management changes,” wrote Bank of America in a note. Even though they’re not concerned, analysts do acknowledge that Foran’s departure will “be viewed as a significant loss.” Bank of America rates Walmart stock buy with a $135 price objective. KeyBanc analysts expect the transition to be “smooth,” and highlight that Marc Lore will continue on as head of Walmart U.S. e-commerce. KeyBanc rates Walmart shares overweight with a $112 price target. Walmart Inc.
will announce Furner’s successor at Sam’s Club at a later date. Walmart stock has rallied 28.5% for the year to date while the Dow Jones Industrial Average
is up 15.3% for the period.
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