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On Friday, KeyBanc Capital Markets adjusted its outlook on Walmart Inc. (NYSE:WMT), increasing the retail giant’s price target from $100 to $105, while maintaining an Overweight rating. The revision follows Walmart’s fourth-quarter earnings, which surpassed expectations, showcasing broad market share gains and positive underlying trends. According to InvestingPro data, Walmart’s stock has delivered an impressive 69.9% return over the past year, though current valuation metrics suggest the stock is trading at a relatively high P/E ratio of 40.16.
Walmart reported stronger than anticipated comparable sales, consistent with the robust data from KeyBanc’s proprietary research. Specifically, Walmart U.S. saw a 4.6% rise in comps, while Sam’s Club experienced an even higher increase of 6.8%. This continued strength was fueled by sustained customer traffic and marked the second consecutive quarter of positive general merchandise comps since 2021, with unit volume also showing a low single-digit increase.
The company’s e-commerce, marketplace, and advertising sectors also demonstrated vigorous growth. Despite issuing a guidance for 2025 that didn’t meet investor expectations, KeyBanc analysts believe the forecast accounts for one-time items and is likely conservative. Notably, Walmart maintains a strong financial position with an InvestingPro Financial Health Score of "FAIR" and has consistently raised its dividend for 30 consecutive years, demonstrating remarkable stability in shareholder returns.
KeyBanc’s analyst Bradley Thomas expressed confidence in Walmart’s growth strategy and its ability to maintain a strong position in the retail sector. Thomas highlighted Walmart’s compelling consumer value proposition, its multifaceted growth initiatives, and the ongoing automation of its supply chain as key factors underpinning the Overweight rating and the increased price target.
Walmart’s fourth-quarter performance, as well as the company’s strategic initiatives, have reinforced KeyBanc’s positive stance on the retailer’s stock. The firm anticipates Walmart will continue to capture market share and deliver robust results, supporting the higher price target of $105.
In other recent news, Walmart has reported its earnings and revenue results, drawing attention from several analyst firms. The company posted an earnings per share (EPS) of $0.66, narrowly exceeding the consensus estimate of $0.65. U.S. comparable sales increased by 4.6%, surpassing expectations, while Sam’s Club saw a notable rise of 6.8% in comparable sales. However, international sales fell short of expectations, declining by 0.7% due to unfavorable foreign exchange rates.
Walmart’s guidance for fiscal year 2025 anticipates an EPS range of $2.50 to $2.60, which is below the consensus estimate of $2.77, a point noted by several analysts including those from Citi and Goldman Sachs. Stifel analysts raised their price target for Walmart to $99, citing confidence in the company’s ability to increase operating profit faster than sales. Meanwhile, TD Cowen maintained a Buy rating with a $110 target, highlighting Walmart’s technological advancements and consistent performance in a volatile market.
JPMorgan also maintained an Overweight rating with a $112 target, emphasizing Walmart’s gross margin improvement and effective inventory management. Lastly, Goldman Sachs reaffirmed its Buy rating with a $101 target, noting Walmart’s strong e-commerce performance and market share gains in upper-income households. These developments come as analysts continue to express varying degrees of optimism about Walmart’s strategic direction and financial outlook.
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