DA Davidson reiterates Buy rating on Walmart stock, maintains $117 price target

Investing.com - DA Davidson has reiterated its Buy rating on Walmart (NYSE:WMT) stock, maintaining its price target of $117.00 despite mixed quarterly results. The retail giant, currently trading near its 52-week high with a market capitalization of $816 billion, shows strong momentum with a 14.38% year-to-date return, though InvestingPro analysis indicates the stock is trading above its Fair Value.

The research firm noted that Walmart’s top-line metrics were strong for both the quarter and outlook, with impressive annual revenue of $685 billion, though earnings per share missed expectations when anticipated accounting benefits from tariff-related cost and price increases failed to materialize.

Higher self-insured general liability claims expenses also negatively impacted earnings, though DA Davidson indicated these issues were not indicative of ongoing business trends.

Walmart’s guidance was characterized as "more good than not," with third-quarter projections exceeding Street expectations for both sales and earnings per share, while the full-year plan was increased with sales forecasts above consensus.

The firm acknowledged that while Walmart’s earnings per share guidance came in below consensus, it is typically viewed as conservative, concluding that "the strong 2Q comps and 3Q guide win the day." As a testament to its stability, InvestingPro data shows Walmart has maintained dividend payments for 53 consecutive years, with 13.25% dividend growth in the last twelve months. Get access to 12 more exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report.

In other recent news, Walmart reported its second-quarter earnings for fiscal year 2026, revealing mixed results. The company posted earnings per share (EPS) of $0.68, which fell short of the anticipated $0.74. Despite this miss, Walmart exceeded revenue forecasts, achieving $177.4 billion compared to the expected $174.4 billion. Truist Securities maintained its Buy rating on Walmart, highlighting the retailer’s strong sales performance, particularly a 4.6% increase in U.S. comparable sales and robust growth at Sam’s Club. Additionally, BMO Capital reiterated its Outperform rating with a $110 price target, noting that higher general liability claims affected the reported EPS. Both firms pointed to Walmart’s underlying strength despite the EPS miss. International operations also contributed positively, with a mid-single-digit sales growth. These developments reflect Walmart’s continued resilience in the retail sector.

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