Guggenheim raises Walmart stock price target to $115 on strong positioning

Investing.com - Guggenheim has raised its price target on Walmart (NYSE:WMT) to $115.00 from $112.00 while maintaining a Buy rating on the stock ahead of the retailer’s second-quarter results. The retail giant, currently valued at $798 billion, has demonstrated solid fundamentals with revenue reaching $685 billion in the last twelve months.

The firm cited Walmart’s "sturdy strategic positioning" despite concerns about Amazon (NASDAQ:AMZN)’s expansion into same-day fresh food delivery, noting that Walmart’s unmatched scale and productive store and supply chain assets should give it advantages in delivery speed. According to InvestingPro, Walmart has maintained dividend payments for 53 consecutive years and shows good financial health with stable metrics.

Guggenheim projects Walmart will report second-quarter total sales growth of 4.4% and EBIT (earnings before interest and taxes) growth of 8.7%, with potential for the company to revise its full-year EBIT growth guidance upward from the current 3.5-5.5% range.

The research firm also expects Walmart Connect, the retailer’s advertising business, to show another quarter of expansion exceeding 30%, further strengthening the company’s position.

Guggenheim noted that Walmart currently trades at 17.4x its 2026 estimated EBITDA, representing a 2x PEG ratio compared to Costco (NASDAQ:COST)’s 3x, suggesting room for multiple expansion.

In other recent news, Walmart announced an expansion of its employee discount to include nearly all grocery purchases, effective immediately. Previously, the 10% discount was limited to fresh produce and general merchandise but now covers items like milk, pasta, frozen pizza, and meat. This development comes as analysts maintain a positive outlook on Walmart’s financial performance. Telsey Advisory Group reiterated its Outperform rating, projecting quarterly sales growth of 3.5% to $175.3 billion, slightly below the consensus estimate. Oppenheimer also raised its price target to $115, citing a potential positive guidance revision cycle. UBS has maintained its Buy rating, expecting Walmart’s second-quarter results to show strong underlying momentum. Meanwhile, Sonoma Pharmaceuticals launched its diaper rash product in 3,600 Walmart stores, Amazon, and other major U.S. retail chains. This product is based on Sonoma’s patented Microcyn technology, utilizing stabilized hypochlorous acid.

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