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Walmart: Analysts’ Recommendation and Target Price

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Analysts’ target price

Due to Walmart’s (WMT) stronger-than-expected fiscal first-quarter earnings, a few analysts increased their target price on the stock. J.P. Morgan increased the target price on Walmart stock to $110 from $108. RBC raised the target price to $104 from $102. Walmart’s better e-commerce margins, favorable merchandise mix, and strong comparable sales in its US business are expected to support the stock. However, price investments, competitive headwinds, and tough YoY (year-over-year) comparisons could limit the upside in the stock.

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Among the 32 analysts providing recommendations on Walmart stock, 16 recommended a “buy,” 15 recommended a “hold,” and one recommended a “sell.” Analysts maintained a consensus target price of $108.93 on Walmart stock, which implies a potential upside of 7.5% based on its closing price of $101.31 on May 16.

Stock performance

Walmart shares have risen 8.8% on a YTD (year-to-date) basis. Impressive US comparable sales, a better-than-expected performance on the earnings front, and growth in digital sales are driving Walmart stock. However, competitive headwinds and pressure on the company’s profitability could limit the upside.

Costco (COST) and Target (TGT) stock have risen 21.5% and 7.1% on a YTD basis.

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