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How Analyst Price Targets for Walmart Are Trending

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Walmart’s target price is showing an uptrend

The graph below shows that Walmart’s (WMT) price target is on an uptrend with multiple analysts raising their price target in recent months thanks to the company’s strong sales and improved earnings on the back of stellar e-commerce sales and increased store traffic.

Walmart has rolled out several customer-friendly initiatives aimed at saving time and money, which have bolstered the company’s top-line performance and helped its earnings to return to growth. Walmart’s value pricing, fast-delivery for online orders, expansion of online grocery pickup services, supply-chain reinvention, and omnichannel offerings resonate well with customers and solidify its competitive positioning.

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Meanwhile, the company is expected to end the current fiscal year on a strong note as analysts expect the company to report strong holiday sales. Moreover, its sales and earnings are expected to rise in coming quarters driven by continued strength in its e-commerce business and improvement in store traffic owing to price investments, fresh offerings, and exclusive products. However, increased competition could restrain its sales and earnings growth rate.

Ratings and target price summary

About 48.0% of the 33 analysts covering Walmart recommend a “buy.” Meanwhile, 52.0% maintain a “hold” rating. Walmart stock closed at $104.30 on January 18, 2018, which is on par with the analysts’ 12-month price target of $104.77 per share.

In comparison, analysts maintain a “neutral” outlook on Target (TGT). However, analysts remain upbeat on Costco (COST) stock thanks to its industry-leading sales and earnings growth.

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