Walmart Inc.

(New York Stock Exchange)
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Bullish +65

Walmart Stock Slips Even as BofA Lifts Target to $139

Analyst upgrade Earnings report AI-generated analysis

πŸ“‰ Walmart stock fell 1.23% in premarket trading ahead of third-quarter earnings scheduled for November 19.

πŸ“ˆ Bank of America raised its price target on WMT to $139 from $126 and maintained a Buy rating.

πŸ’° Analysts forecast Q3 EPS of $0.63 and comparable sales growth of 2.8% for Walmart U.S. excluding fuel.

πŸ“Š The new valuation multiple of 44x earnings reflects higher peer valuations across the retail sector.

πŸ›’ Bank of America sees Walmart positioned to gain share in both grocery and general merchandise categories.

⚠️ Analysts note the market needs faster comparable sales growth outside health and wellness sectors.

πŸ“’ There is a need for more confidence that marketplace and advertising revenue can speed up EPS growth next year.

🏦 BMO Capital Markets raised its price target on WMT to $136 recently.

🏦 Mizuho also raised its price target on Walmart stock to $135 in recent actions.

Bullish Signals
  • Bank of America raised its price target to $139 from $126 while maintaining a Buy rating ahead of earnings.
  • The company is positioned to keep gaining market share in both grocery and general merchandise segments.
  • Analysts expect Walmart to move full-year sales and EPS guidance to the upper end of its prior range.
  • BMO Capital Markets raised its price target on WMT to $136 recently.
  • Mizuho raised its price target on Walmart stock to $135, indicating broader analyst support.
Risk Factors
  • Walmart stock slipped 1.23% in premarket trading despite the positive analyst upgrade from Bank of America.
  • Bank of America states the market needs to see faster comparable sales growth at Walmart U.S. outside health and wellness.
  • There is a requirement for more confidence that marketplace and advertising revenue can speed up EPS growth next year.
Full Analysis
Walmart Inc. (NASDAQ: WMT) saw its stock price slip 1.23% in premarket trading despite a bullish analyst upgrade from Bank of America Securities ahead of the retailer's third-quarter earnings report scheduled for November 19. Bank of America raised its price target on Walmart to $139 from $126 while maintaining a Buy rating, citing an expectation that the company will move its full-year sales and EPS guidance toward the upper end of its prior range. The analyst firm forecasts third-quarter earnings per share of $0.63 and comparable sales growth of 2.8% for Walmart U.S., excluding fuel. The valuation increase to a 44x earnings multiple reflects higher multiples across Walmart's peer group, with Bank of America noting the retailer is well-positioned to gain market share in both grocery and general merchandise categories. However, the analyst emphasizes that the market requires faster comparable sales growth outside health and wellness sectors and greater confidence that marketplace and advertising revenue can accelerate EPS growth in the coming year. Recent momentum for Walmart's stock is supported by concurrent upgrades from other major institutions, including BMO Capital Markets raising its target to $136 and Mizuho increasing its target to $135, indicating a broader consensus of strength among Wall Street analysts despite the short-term price dip.