沃尔玛（WMT）：员工周见闻——“惠宜”品牌更上一层楼

+1 917 344 8303zhihan.ma@bernsteinsg.com ?WMT Walmart (WMT): Takeaways from associates week - "Great Value"gets better of new initiatives to analysts and investors.We came away impressed by Walmart's elevatedvalueproposition tocustomers,supported by its deepbenchof executivetalent. In Food & Consumables, the focus is on providing an elevated product experience (e.g,functional food supporting health goals)without sacrificing value proposition through privatebrands (e.g., the redesigned Great Value brand; premium bettergoods). Offerings span fromdinner solutions for 4 under $15 and premium options that require little to no preparation. In General Merchandise,the highlightwas howWalmart increasingly leverages technologyto drive product development. From virtual simulation, to 3D rendering, to product durabilitytesting technologies, wMT is leveraging new tools to work with suppliers to fine tune productspecs and shorten the product developmentcycle. InSam's,theambition is buildingthe clubof thefuture.Aprominent example is the Scan &Gotechnology today. The team is also rapidly improving e-commerce delivery speed and lookingto further integrate Al into associate workflowas well as with the customer.The focus onbuildinga seamless omni-channel experience has helped attract/retain younger customers. Across business lines,the underpinning principle is Walmart's focus on continuing to elevateits value proposition to customers. We expect WMT to continue to reinvest in the business tosupport these initiatives, which may at times impact its ability to grow EBIT faster than salesas in Q1.However,we believe this is the right long term strategy and maintain our convictionabout its ability to generate above-algo growth for the rest of the year. InvestmentImplications We rateWMTOutperformwitha Target Price of$145. bettergoods brand solutions, from dinner for 4 under $15... to no preparation. References to"Bernstein" or theFirm" in these disclosures relate to the following entities: Bernstein Institutional Services LLC (April 1, 2024 onwards), Sanford C. Bernstein & Co., LLC (pre April 1, 2024), Bernstein Autonomous LLP, BSG France S.A. (April 1,2024onwards),SanfordC.Bernstein(HongKong)Limited盛博香港有限公司，SanfordC.Bernstein(Canada)Limited,SanfordAfrica Technologies &Services to produce Bernstein research under a Global Services Agreement in place between BernsteinandSocieteGeneraleBernstein is partof a joint venture betweenSociete Generale (SG)and AllianceBernstein,L.P.(AB).Unless specifically noted otherwise, for purposes of these disclosures, references to Bernstein's“affiliates”relate to both SG and AB and their respectiveaffiliates. We seta $145target price usinga P/Emultiple of 39.0xagainst our forward Q5-Q8EPS estimate of $3.71. RISKS WalmartInc OurwMTpricetargetis subjecttoseveral macroeconomic andcompany-specific risks.Downside risks include: :AnunexpectedsofteningoftheconsumerenvironmentintheUSorinlargeinternationalmarketscouldresultin weakercompsand expense deleverage..Walmart could fail in new business ventures,including e-commerce and advertising,which wouldthreaten its abilityto achievelong-term revenue and margin targets.: Increased regulatory scrutiny in the US given Walmart's leading position in US grocery RATINGSDEFINITIONS,BENCHMARKSANDDISTRIBUTION EQUITYRATINGSDEFINITIONS Bernsteinbrand TheBernsteinbrand rates stocks based onforecasts of relativeperformanceforthenext 12monthsversus theS&P500 forstockslistedontheU.S.andCanadianexchanges,versustheBloombergEuropeDevelopedMarketsLargeandMidCapPriceReturn Index EUR (EDME)for stocks listed on the European exchanges and emerging markets exchanges outside of the AsiaPacific region, versus the Bloomberg Japan Largeand Mid CapPrice Return Index USD (JPL)for stocks listed on the Japanese(ex-Japan)exchanges-unlessotherwisespecified. The Bernstein brand has three categories of ratings: :Outperform: Stock will outpace the market index bymore than 15 pp.Market-Perform: Stock willperform in line with the market index to within+/-15 pp:Underperform: Stock willtrail the performance of themarket indexbymore than 15 pp NotRated:A rating assigned when the stock cannot beaccuratelyvalued,orthe performance ofthe companyaccurately Not Covered (NC) denotes companies that are not under coverage.70% Bernstein brand stockratings arebased on a 12-month timehorizon. The Autonomous brand rates common stocks as indicated below.As ourbenchmarks weusethe Bloomberg Europe 5ooBanks And Financial Services Index (BEBANKS) and Bloomberg Europe Dev Mkt Financials Large and Mid Cap Price Ret Index EUR(EDMFI)indexfordeveloped Europeanbanks and Payments,theBloomberg Europe5OO InsuranceIndex(BEINSUR)forEuropeaninsurers,theS&P5OOandS&PFinancialsforUSbanksandPaymentscoverage,S5LIFEforUSInsurance,theS&PInsuranceSelect Industry (SPSliNS) for US Non-Life Insurers coverage, and the Bloomberg Emerging Markets Financials Large, Mid andSmall Cap Price Return Index (EMLSF) for emergin