BofA Backs Walmart Ad Push with $126 Target, Sees Billions in Connected TV Revenue

Bank of America reiterated its Buy rating on Walmart (WMT) with a $126 price target, implying about 6% upside from Monday's $118.7 close, citing the retailer's expansion into digital advertising, connected TV and AI-powered shopping. Analyst Christopher Nardone, after meeting Walmart Connect executive Ryan Mayward, said Walmart's roughly 150 million weekly customers provide advertisers with valuable consumer insights and measurable returns. Third-party sellers typically allocate 10% to 12% of gross merchandise value to advertising, well above the 4% to 6% spent by traditional suppliers, BofA estimated. Walmart acquired Vizio in December 2024 and Vibe.co in August 2026, extending its ad reach to brands not sold in its stores or online. Nardone said Vibe's self-service platform lets small and midsize businesses target streaming TV ads using Walmart's shopper data, calling it a multibillion-dollar opportunity over time, with Vizio's WatchFree+ service adding inventory. Walmart has also launched its Sparky AI shopping assistant and partnered with Meta's Muse platform, though Nardone cautioned it is too early to assess how AI agents will reshape advertising. The $126 target reflects 40 times estimated fiscal 2028 adjusted EPS, above the prior two-year average of 36 times.