11:52 AM EDT, 06/06/2024 (MT Newswires) -- Walmart ( WMT ) is likely to continue its multi-year profit boom amid strong in-store execution and momentum in its core geographies, Oppenheimer said Thursday.

"We expect a multiyear profit boom to continue driven by strong management execution, momentum in WMT's core geographies, and further scaling of higher margin alternative revenue streams," Oppenheimer analysts Rupesh Parikh and Erica Eiler said in a note.

The analysts said store checks in a few US geographies continued to show "very strong" in-stocks, limited clearance inventory, and well-staffed stores, likely representing an underappreciated part of the business.

Walmart's ( WMT ) shares are up nearly 27% so far this year, outperforming an 11% gain in the S&P 500 index, according to the note.

"We believe WMT's premium valuation can hold driven by the potential for continued share gains and stronger levels of profit growth vs. history," the analysts said.

Oppenheimer increased its price target on the stock to $75 from $69 while reiterating its outperform rating.

Price: 67.30, Change: +0.21, Percent Change: +0.31