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On Monday, Oppenheimer analyst Rupesh Parikh adjusted the price target on Walmart (NYSE:WMT) shares to $95 from the previous target of $110, while maintaining an Outperform rating on the stock. The revision comes ahead of Walmart’s Analyst Day events scheduled for April 8 and April 9, 2025. Currently trading at $83.19, Walmart maintains strong market presence with a $667 billion market capitalization and an impressive track record of 53 consecutive years of dividend payments.
Parikh noted the possibility of Walmart’s management retracting its fiscal year 2025 guidance due to the ongoing impact of tariffs. Although the first-quarter earnings per share (EPS) guidance is deemed achievable, the analyst believes that there is limited room for outperformance. The anticipation is that consumers may increase their purchases in the short term to preempt tariff-driven price hikes, which could help mitigate the recent challenges faced in discretionary spending categories. According to InvestingPro data, Walmart maintains a GOOD financial health score, with solid revenue growth of 5.07% over the last twelve months.
The analyst’s outlook for the second to fourth quarters of the year has been tempered in light of the recent tariffs, which could negatively affect discretionary spending later in the year. As a result, earnings projections for these quarters have been lowered.
Despite the price target reduction, Oppenheimer does not expect the upcoming Analyst Day to act as a positive catalyst for Walmart shares. Parikh suggests that investors should consider using any share price weakness as an opportunity to invest in the company, given its Outperform rating. The firm’s strategy appears to be leveraging potential dips in the stock price of companies they rate highly.
In other recent news, Walmart has been in the spotlight with several developments that could interest investors. UBS continues to support Walmart, maintaining a Buy rating and a $112 price target, emphasizing the importance of Walmart Connect, the company’s advertising segment, in driving business growth. Barclays (LON:BARC) also reaffirmed an Overweight rating with a $108 target, highlighting Walmart’s market share gains and strategic responses to economic challenges like tariffs. DA Davidson echoed positive sentiments, upholding a Buy rating with a $117 target, and praised Walmart’s advancements in automation and alternative business ventures, which have contributed to significant financial growth.
Jefferies maintained a Buy rating with a $120 price target, pointing to the upcoming Walmart Investment Community Meeting as an opportunity to showcase the company’s growth strategies, particularly in e-commerce and membership clubs. The meeting is expected to offer insights into Walmart’s efforts to enhance operating income faster than sales. Additionally, Walmart is reportedly considering joining a group of investors to acquire TikTok, reigniting interest in the platform alongside other potential buyers like Amazon (NASDAQ:AMZN) and Oracle (NYSE:ORCL). These recent developments underscore Walmart’s strategic maneuvers in both its core and emerging business areas.
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