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Investing.com - BMO Capital has reiterated its Outperform rating and $110.00 price target on Walmart (NYSE:WMT) despite the retailer facing cost pressures in its second-quarter results. According to InvestingPro data, analyst consensus remains strongly bullish with 11 analysts recently revising their earnings estimates upward, with price targets ranging from $64 to $127.
The retail giant’s bottom-line growth was constrained by unplanned insurance claims costs during the fiscal second quarter of 2026, according to BMO Capital’s analysis.
These insurance claims, combined with other unusual expenses, represent approximately a 5% headwind to Walmart’s earnings before interest and taxes (EBIT) for fiscal year 2026.
Despite these challenges, BMO Capital believes Walmart remains fundamentally on track to deliver high single-digit to low double-digit percentage EBIT growth alongside mid-single-digit percentage revenue growth.
BMO Capital acknowledges potential near-term volatility from tariffs expected to increase in the second half of the year, but maintains that Walmart will emerge as a major market share gainer in the retail sector.
In other recent news, Walmart reported strong sales momentum in its latest quarterly results, with U.S. comparable sales growing by 4.6%, Sam’s Club sales increasing by 5.9%, and international sales growth exceeding 10% in constant currency. Despite these positive figures, Walmart’s earnings per share missed consensus expectations due to temporary factors such as general liability claims and tariff dynamics, as noted by KeyBanc. In response to these developments, Bernstein raised its price target for Walmart to $117, citing an improved earnings outlook despite a modest 0.4% growth in adjusted constant currency EBIT.
Meanwhile, Telsey Advisory Group increased its price target for Walmart to $118, highlighting the company’s expanded vision beyond traditional retail, including advancements in advertising, merchant services, and last-mile delivery. UBS reiterated its Buy rating with a $110 price target, attributing steady U.S. comparable sales to accelerating e-commerce growth. Truist Securities adjusted its price target to $109, maintaining a Buy rating but acknowledging discrete expenses impacting the retailer.
These analyst updates reflect varied perspectives on Walmart’s financial performance and strategic direction, with some firms focusing on temporary challenges and others emphasizing long-term growth opportunities.
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