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How Analysts Reacted to Walmart’s Fiscal 4Q18 Results

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Feb. 22 2018, Updated 11:20 a.m. ET

Multiple analysts lowered target price

Walmart (WMT) reported mixed fiscal 4Q18 results. Analysts remain concerned about the company’s waning digital sales growth rate, which was lower than half the growth rate it achieved in fiscal 3Q18. Notably, multiple analysts lowered their target price on Walmart stock following the quarterly results.

UBS reduced its target price to $103 per share on Walmart stock from $105. Also, Barclays lowered it to $116 from $120. Meanwhile, Telsey Advisory Group, Stifel, and Raymond James decreased their price target by 8%, 5%, and 3% to $110, $99, and $110, respectively.

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Ratings summary and price target

Of the 34 analysts providing recommendations on Walmart stock, 56.0% maintained a “hold” rating as the waning digital sales growth rate, price investments, and increased competition from Amazon (AMZN) could restrain its upside.

However, 44.0% of the analysts maintained a positive outlook on Walmart stock and rated it a “buy,” as the company’s fundamentals remain intact with strength in its core business.

Besides, analysts suggest a target price of $104.97 on Walmart stock, which represents an upside potential of 14.7% based on its closing price of $91.52 on February 21, 2018.

In comparison, analysts also maintain a “neutral” outlook on Target Corporation (TGT). However, they remain positive on the prospects of Costco (COST) stock, thanks to its stellar comps growth amid challenging retail environment.

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