Walmart Agrees to Expand Zipline Retail Drone Deliveries

Walmart (WMT) received multiple price target increases ahead of its upcoming earnings report. Target (TGT) and Five Below (FIVE) are also expected to perform well. WMT shares rose 1%, while TGT and FIVE dipped slightly before market open.

Walmart and Zipline plan to add 300 drone delivery sites under a new multi-year agreement. Zipline raised $1.5B at a $21.5B valuation, with funds earmarked for U.S. expansion and hiring. Uber aims for 1M daily deliveries with Zipline by 2029, according to the press release.

UBS kept its Buy rating on Walmart and increased its price target to $149 from $130, suggesting an 18.7% upside from the Nov 6 close of $125.52. Recent analyst price targets for Walmart range from $130 to $145.

Walmart will pay $7.8 million to settle Pennsylvania child labor law violations, including $7.68 million in penalties and $142,785 in prior fines. The settlement, the largest in Pennsylvania history, follows investigations revealing 65 violations per audit at eight stores. Walmart must implement compliance measures and face doubled penalties for future violations.

Walmart agreed to pay millions to settle Pennsylvania child labor law violations. Investigators found 65 violations per audit at 8 stores. Future violations will result in double fines. Governor Shapiro and Labor Secretary Walker announced the settlement, emphasizing stricter enforcement.

UBS raised its price target for Walmart (WMT) to $149 from $130, citing strong earnings growth potential. The bank expects Q3 results to show market share gains, resilient profitability, and growth in higher-margin businesses. UBS forecasts US comparable sales growth of 2-3% and estimates additional freight expenses of $650 million. The broker believes Walmart's eCommerce and alternative revenue streams will drive earnings growth, potentially prompting an increase in EPS guidance.