11:44 AM EDT, 08/16/2024 (MT Newswires) -- Walmart's ( WMT ) fiscal Q2 and what it is accomplishing are impressive, with the company experiencing "encouraging" topline trends, Morgan Stanley said in a note Friday.

"First, general merchandise ended the quarter 'relatively flat' with positive units offsetting mid-single-digit deflation. This is rare across retail. Sam's Club did it," the investment bank said. "Second, monthly cadence in Q2 was relatively stable, holding on even in July when other retailers have pointed to a slowdown."

Morgan Stanley said the company bucked retail trends during the quarter amid its consumable mix that helped drive traffic and "clever" merchandising around the Fourth of July and back-to-school.

The firm also noted that Walmart ( WMT ) is gaining share with upper income households.

Morgan Stanley lifted Walmart's ( WMT ) price target to $82 from $75 and maintained its overweight rating.

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