TD Cowen reiterates Buy rating on Walmart stock, cites strong comps

Published 22/08/2025, 14:22
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Investing.com - TD Cowen has reiterated its Buy rating and $115.00 price target on Walmart (NYSE:WMT) stock, citing strong comparable sales and consistent monthly trends. According to InvestingPro data, 11 analysts have recently revised their earnings estimates upward, with the retail giant maintaining a strong consensus recommendation of 1.38.

The retailer, with its impressive $693.15 billion in revenue, posted 4.6% U.S. comparable sales in the second quarter, driven by both traffic growth of 1.5% and ticket increases of 3.1%, which included inflation of 110 basis points. These trends continued into the third quarter, according to TD Cowen’s analysis.

Walmart’s general merchandise category showed positive low-single-digit comparable sales growth, with apparel, media, and auto categories leading the improvement. The company’s e-commerce business, now profitable, grew 25% on volume. For deeper insights into Walmart’s financial health and growth metrics, InvestingPro subscribers can access comprehensive analysis and additional ProTips.

TD Cowen noted Walmart demonstrated capacity to gain and retain market share across income groups, supported by healthy price gaps amid uncertain economic conditions. The firm also highlighted increased e-commerce delivery scale and profitability.

The retailer’s digital marketplace grew 17% globally in the second quarter, while Walmart+ memberships delivered double-digit fee income growth and advertising businesses increased 46% globally including Vizio (31% in the U.S. excluding Vizio).

In other recent news, Walmart’s earnings and revenue results have been under scrutiny, with several analysts weighing in on the company’s performance. RBC Capital maintained its Outperform rating, citing potential operating profit growth despite a recent profit miss attributed to non-core items. BMO Capital also reiterated its Outperform rating, noting cost pressures due to unplanned insurance claims during the fiscal second quarter of 2026. On the other hand, Truist Securities adjusted its price target to $109, acknowledging strong sales momentum, including a 4.6% growth in U.S. comparable sales and over 10% growth in international sales in constant currency.

DA Davidson maintained its Buy rating with a $117 price target, highlighting a shift in Walmart’s approach to tariff-related price increases. UBS reiterated a Buy rating with a $110 price target, emphasizing steady U.S. comparable sales and accelerating e-commerce growth. These developments reflect a range of perspectives from analysts, focusing on Walmart’s financial performance and strategic adjustments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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