TD Cowen raises Walmart stock price target to $115

On Friday, TD Cowen showed confidence in Walmart Inc. (NYSE:WMT) by increasing the company’s price target from $110.00 to $115.00, while retaining a Buy rating on the stock. The revision came despite the stock’s mid-single-digit percentage (MSD%) decline after the retailer posted fourth-quarter earnings per share (EPS) of 66 cents, narrowly surpassing Wall Street’s expectations of 65 cents. According to InvestingPro data, Walmart has demonstrated impressive financial strength with revenue reaching $681 billion in the last twelve months, while maintaining a solid EBITDA of $42.3 billion. The dip in shares was attributed to Walmart’s conservative guidance for the first quarter of fiscal year 2026, with an EPS forecast of 57-58 cents, and for the full fiscal year, with a projected EPS of $2.50-2.60, both falling short of the Street’s anticipated 64 cents and $2.77, respectively. InvestingPro analysis reveals that 11 analysts have revised their earnings downward for the upcoming period, though the company maintains a strong financial health score of "GOOD" based on comprehensive metrics.

During a follow-up discussion, Walmart highlighted the consistent momentum within the company and explained that the fiscal year’s guidance is intended to set a cautious benchmark for the year. The stock’s movement was not unexpected, considering Walmart’s current P/E ratio of 40.16x, significantly above its historical average. This elevated valuation aligns with InvestingPro’s assessment that the stock is currently trading above its Fair Value. For investors seeking deeper insights, InvestingPro offers exclusive access to detailed valuation metrics and 14 additional ProTips for Walmart. Analyst Oliver Chen noted that the current lower stock price presents a purchase opportunity, as Walmart has multiple drivers to reinforce its growth, including grocery, value, supply chain, delivery, and high-margin marketplace and advertising initiatives.

The company’s strategic focus on these areas is anticipated to further stimulate Walmart’s business, despite the initial conservative earnings outlook. The analyst’s perspective suggests that the retailer is well-positioned to build on its stable business foundation and capitalize on its operational strengths.

Walmart’s comprehensive approach to driving sales, especially through its emphasis on high-margin sectors like the marketplace and advertising, is expected to contribute positively to its financial performance in the coming years. The company’s efforts in enhancing its grocery and delivery services are also expected to play a significant role in its growth strategy.

The increase in Walmart’s price target by TD Cowen reflects a positive outlook on the company’s ability to maintain solid momentum through fiscal year 2026, with the current pullback in stock price seen as an opportunity for investors to engage with a stable and growing retailer. Notable strengths include Walmart’s impressive 30-year streak of dividend increases and robust 69.9% total return over the past year. Discover comprehensive analysis and valuation metrics in Walmart’s detailed Pro Research Report, available exclusively on InvestingPro, along with 1,400+ other top US stocks.

In other recent news, Walmart Inc. has reported notable financial results and received various analyst assessments. Walmart’s latest earnings report revealed a revenue increase to $180.6 billion, which exceeded expectations, along with an adjusted earnings per share (EPS) of $0.66, surpassing estimates. Despite this strong performance, Walmart’s fiscal year 2026 guidance did not meet some analysts’ expectations, leading to mixed reactions. RBC Capital Markets adjusted its price target for Walmart to $107, citing a recalibration of EPS estimates due to factors such as the VIZIO acquisition. Meanwhile, BMO Capital Markets maintained an Outperform rating with a $110 price target, emphasizing Walmart’s ongoing business momentum and market share gains. Guggenheim Securities raised its price target to $110, highlighting Walmart’s strategic initiatives and strong revenue growth. Piper Sandler lowered its price target to $114, noting the need for recalibrating investor expectations after recent optimistic projections. Lastly, Bernstein SocGen Group reiterated an Outperform rating with a $117 target, acknowledging Walmart’s conservative guidance amid uncertainties but maintaining a positive long-term outlook.

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