Edward Kelly, an analyst at Wells Fargo & Co, pointed out that Walmart Inc (WMT.US) seemed to be becoming more and more interested in India, but it thought the company's capital injection into India's Tata group had mixed news, so it set a target price of $130, maintaining a "neutral" rating, Zhitong Financial APP learned.

It was reported earlier that Walmart Inc was injecting as much as $20 billion to $25 billion into its "super app" with Tata Group. It is reported that the super app is expected to be launched between December 2020 or January 2021 and will integrate Tata's consumer business into one channel to provide a variety of products in the retail sector. In addition, the "super application" could be launched as a joint venture between Tata Group and Walmart Inc, taking advantage of the collaboration between Tata's e-commerce business and Walmart Inc's e-commerce subsidiary Flipkart in India.

The analyst said he thought the news was mixed, although Flipkart's path to value creation seemed to be moving in a positive direction. The analyst also praised the company's management for its willingness to think beyond conventional thinking, given the possibility of a future IPO, but redoubling its investment in this complex market is not without risk, so it has a "neutral" rating with a target price of $130.