Evercore ISI raises Walmart stock price target to $107

Published 04/06/2025, 12:32
Evercore ISI raises Walmart stock price target to $107

On Wednesday, Evercore ISI analysts increased the price target for Walmart stock (NYSE: NYSE:WMT) to $107 from $105, while maintaining an Outperform rating. This adjustment comes ahead of Walmart’s annual Shareholders’ Day store tours and executive meetings scheduled for Thursday and Friday. For comprehensive analysis of Walmart’s financial health and growth prospects, investors can access detailed metrics and valuations through InvestingPro.

The analysts highlighted Walmart’s 10% year-to-date stock increase, compared to the S&P 500’s 1% rise, as a key factor in their decision. They emphasized the company’s focus on sustaining share gain momentum, driving positive traffic, and unlocking margin expansion.

In the medium to long term, the analysts see Walmart’s ability to navigate tariff volatility and monetize its marketing business, membership base, and fulfillment services as crucial. They also noted the potential impact of a Flipkart IPO on the company’s stock performance.

The analysts expressed interest in learning about Walmart’s plans to win market share and drive traffic, while enabling earnings before interest and taxes (EBIT) growth faster than sales through potential margin benefits. This includes the evolving business mix toward higher-margin ancillary profit areas like membership, advertising, third-party services, and automation.

Walmart remains part of Evercore ISI’s Fab Five Portfolio, which also includes O’Reilly (NASDAQ:ORLY) Automotive (NASDAQ: ORLY), Sherwin-Williams (NYSE: NYSE:SHW), Amazon (NASDAQ: NASDAQ:AMZN), and Home Depot (NYSE: NYSE:HD). Notably, Sherwin-Williams, currently trading at $357.76, shows strong financial health with an InvestingPro Overall Score of 2.84 (GOOD). The company has maintained dividend payments for 47 consecutive years and demonstrates a solid gross profit margin of 48.72%. According to InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value.

In other recent news, Sherwin-Williams reported its first-quarter 2025 earnings, with earnings per share (EPS) of $2.25, exceeding the forecasted $2.20. However, the company’s revenue was $5.31 billion, falling short of the anticipated $5.42 billion. Despite this, the company reaffirmed its full-year sales and EPS guidance. Additionally, Sherwin-Williams has been actively pursuing strategic acquisitions, including the recent acquisition of BASF’s architectural business in Brazil. This move is part of the company’s ongoing efforts to expand its market presence. Meanwhile, BofA Securities has adjusted its price target for Sherwin-Williams stock to $289, though it maintained an Underperform rating, citing potential downside risks in the company’s end markets. The firm remains cautious, particularly in light of challenges in the residential and commercial markets. Sherwin-Williams continues to focus on cost control and operational efficiency to navigate these market conditions.

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