DA Davidson maintains Walmart stock Buy rating, $117 target

Published 02/05/2025, 17:54
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On Friday, DA Davidson confirmed its Buy rating and $117.00 price target for Walmart shares (NYSE:WMT), ahead of the company’s earnings report scheduled for May 15, 2025. According to InvestingPro data, analysts’ targets range from $63 to $120, with the stock currently trading at $98.26. Analyst Michael Baker provided insights into the upcoming financial results, predicting that Walmart’s first-quarter performance would demonstrate market share gains and a comparable sales beat, despite potential margin pressures. The company’s current valuation metrics suggest it may be trading above its Fair Value.

Baker’s analysis suggests that Walmart’s upcoming earnings could be pivotal in shaping the market narrative for the consumer sector throughout the spring season. With impressive revenue of $681 billion in the last twelve months and a market capitalization of $787 billion, he highlighted the retailer’s significant influence due to its size and its position as one of the early reporting major box stores. Walmart’s guidance, which was largely reiterated in early April, could see updates given the complex current market environment, according to Baker.

The anticipation of Walmart’s financial disclosure comes at a time when the retail industry is navigating a landscape with numerous variables. InvestingPro analysis reveals several key strengths, including a 30-year track record of dividend increases and strong returns over the past year. Baker’s comments reflect an expectation that Walmart’s results will offer valuable insights into consumer behavior and the company’s operational performance. InvestingPro subscribers have access to 12 additional exclusive insights about Walmart’s financial health and market position.

Investors and market watchers are looking to the May 15th earnings report as a potential indicator of the consumer group’s direction. Walmart’s status as a leading retail giant means its financial health is often seen as a bellwether for the broader sector.

Walmart’s stock performance in the lead-up to the earnings announcement will be closely monitored, with DA Davidson’s reiteration of a positive outlook contributing to the sentiment surrounding the company’s market position.

In other recent news, Upstart (NASDAQ:UPST) has announced a strategic partnership with OneProgress Services LLC, a fintech company owned by Walmart. This collaboration will focus on marketing Upstart’s consumer lending products to Walmart’s vast customer base, though it is not expected to materially impact Upstart’s financial condition by the end of 2025. Mizuho (NYSE:MFG) analyst Dan Dolev views this partnership positively, maintaining an Outperform rating and a $110 price target for Upstart, suggesting confidence in Upstart’s business model. Meanwhile, Walmart has issued $4 billion in senior unsecured notes, with the proceeds intended for general corporate purposes, such as refinancing existing debt and funding investments. The notes, sold at various interest rates and maturities, reflect Walmart’s ongoing management of its capital structure. Additionally, TD Cowen analysts have reiterated a Buy rating for Walmart, highlighting Walmart Connect as a competitive advantage over Amazon (NASDAQ:AMZN) due to its extensive reach and data transparency. Bernstein analysts also see Walmart closing the e-commerce gap with Amazon, noting its strong U.S. e-commerce growth and profitability potential. Both Walmart and Amazon are viewed as long-term winners in the e-commerce space, with Walmart expected to lead in e-grocery and Amazon continuing to innovate in non-grocery categories.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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