Walmart Inc (WMT) announced on Thursday plans to increase annual exports of India-made goods three-fold to $10 billion by 2027.
Walmart shares closed lower for a second consecutive trading session in New York on Thursday. The stock went down 0.47% ($0.69) to $147.04, after touching an intraday low at $146.58, or a price level not seen since November 11th ($146.42).
Shares of Walmart Inc have risen 23.73% so far in 2020 compared with a 13.54% gain for the benchmark index, S&P 500 (SPX).
In 2019, Walmart’s stock went up 27.58%, thus, it underperformed the S&P 500, which registered a 28.88% gain.
India has already become one of Walmart’s key sourcing markets for goods such as jewelry and home-ware, with the retailer’s annual exports being worth nearly $3 billion.
“By significantly accelerating our annual India exports in the coming years, we are supporting the Make in India initiative and helping more local businesses reach international customers, while creating jobs and prosperity at home in India,” Walmart’s CEO Doug McMillon was quoted as saying by Reuters.
In 2018, Walmart acquired a 77% stake in e-commerce company Flipkart for nearly $16 billion. It has been the largest deal within India’s e-commerce industry where Walmart faces fierce competition from Amazon.com Inc’s local unit.
Analyst stock price forecast and recommendation
According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Walmart Inc’s stock price, have a median target of $165.00, with a high estimate of $180.00 and a low estimate of $104.00. The median estimate represents a 12.21% upside compared to the closing price of $147.04 on December 10th.
The same media also reported that at least 19 out of 32 surveyed investment analysts had rated Walmart Inc’s stock as “Buy”, while 5 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.