BMO Capital maintains Outperform rating on Walmart stock

On Thursday, BMO Capital Markets confirmed its Outperform rating on Walmart Inc. (NYSE:WMT) shares, maintaining a price target of $110.00. The affirmation comes after Walmart reported a robust start to the year, surpassing the high-end of the management’s initial first-quarter guidance. The strong performance was noted despite the company expanding its profitability forecast during the quarter. With a substantial market capitalization of $774.73 billion and impressive annual revenue of $681 billion, Walmart continues to demonstrate its dominance in the retail sector. According to InvestingPro analysis, the company has maintained dividend payments for 53 consecutive years, showcasing its financial stability.

In the first quarter, Walmart delivered strong comparable sales growth, a key retail metric that exceeded expectations. The retailer’s financial performance was solid, with a healthy gross profit margin of 24.85% and return on equity of 22%, yet BMO Capital noted that Walmart has kept its fiscal year 2026 earnings per share guidance range unchanged. This cautious approach is likely due to potential impacts from tariffs in the second half of the year, as the current business trends for Walmart continue to show strength.

BMO Capital expressed confidence in Walmart’s stock by reiterating the Outperform rating and a target price of $110. The firm’s analyst highlighted that Walmart’s current business trends remain robust, which supports the positive outlook. The analyst’s remarks were issued ahead of Walmart’s scheduled conference call, set to take place at 8:00 AM Eastern Time. InvestingPro data reveals that analysts maintain a strong buy consensus, with price targets ranging from $63 to $120, offering investors comprehensive insights into Wall Street’s perspective on the stock.

Walmart’s steady performance and BMO Capital’s reaffirmed confidence in the company’s stock reflect the retailer’s ability to navigate a challenging retail environment successfully. The unchanged fiscal year guidance, despite a strong quarter, indicates a strategic and prudent approach to potential future economic uncertainties.

Investors and market watchers will have the opportunity to delve deeper into Walmart’s strategies and performance during the conference call, which is expected to provide further insights into the company’s operations and outlook for the remainder of the year.

In other recent news, Walmart Inc. reported a robust 4.5% growth in U.S. comparable sales, alongside a similar increase in U.S. EBIT. This performance has led Truist Securities to maintain a Buy rating with a $107 price target, highlighting the company’s solid quarter despite margin pressures. Evercore ISI also reiterated its Outperform rating with a $105 target, anticipating first-quarter earnings to align with market expectations and projecting a 4% increase in comparable sales. UBS analyst Michael Lasser maintained a Buy rating with a $110 target, expressing confidence in Walmart’s potential to demonstrate consistent earnings, especially amid ongoing tariff discussions.

RBC Capital Markets maintained its Outperform rating with a $102 price target, noting adjustments in Walmart’s sales and profit growth forecasts due to inconsistent sales trends and higher-than-expected expenses. Meanwhile, Walmart collaborated with Alquist to complete a significant expansion at the Owens Cross Roads, Alabama Supercenter using 3D Concrete Printing technology. This project showcased a new standard in construction speed and cost efficiency, reducing costs by 15% and material waste by 55%. The strategic use of 3DCP technology underscores Walmart’s commitment to innovation in construction, aiming to streamline processes and reduce costs and timelines.

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