11:23 AM EST, 11/21/2025 (MT Newswires) -- Walmart's ( WMT ) adjusted operating income is re-accelerating, after some short-term issues in H1, backed by the retailer's e-commerce activities and the accelerating profitability of its "eCommerce Block," Morgan Stanley said in a note Friday following the company's fiscal Q3 results.

Walmart ( WMT ) is using structural advantages like scale, supply chain, and technology to "shield customers from inflationary pressures, gain market share and grow earnings all at the same time," the note said.

The investment firm said adjusted operating income has returned to a high single-digit growth pace, supported by rising contributions from online sales, membership, and advertising.

Morgan Stanley said that, while it wasn't able to conduct a funnel analysis due to the lack of Census retail sales data in September and October, it believes the retailer was able to continue to take "significant" market share in the quarter.

Walmart's ( WMT ) US comparable store sales growth of 4.5% is "among the highest in retail despite growing off of a sales base meaningfully above peers," the analysts said. The company is also widening its grocery price gaps while still expanding margins, helped by advertising and marketplace growth.

Additionally, the company's e-commerce sales growth is among the highest in the retail sector at 28% year on year, the note said. The brokerage also highlighted Walmart's ( WMT ) plan to move its stock listing to Nasdaq in December 2025, which could draw more than $20 billion in passive inflows.

Morgan Stanley raised Walmart's ( WMT ) price target to $125 from $115, while reiterating the retailer's overweight rating.

Price: 106.82, Change: -0.29, Percent Change: -0.27