Deutsche Bank analyst Paul Trussell upgraded Walmart (WMT) to Buy from Hold and raised his price target for the shares to $113 from $89. The stock closed yesterday up $1.38 to $94.69.

The retailer is reaping returns on the many years of investment in e-commerce and customer service, Trussell tells investors in a research note titled "Flexing Its Muscles."

The analyst believes Walmart is now in a position to accelerate market share gains in grocery while also growing EBIT dollars and expanding return on investment. He believes Walmart's portfolio of assets is differentiated in the "rapidly changing" retail landscape.