Truist Securities lifts Walmart stock price target to $111 from $107

On Thursday, Truist Securities increased the price target for Walmart (NYSE:WMT) shares to $111.00, up from the previous $107.00, while retaining a Buy rating for the retail giant. The adjustment followed Walmart’s recent performance, which showcased resilience amid various challenges. With a market capitalization of $769 billion and an impressive 63.5% return over the past year, Walmart continues to demonstrate its market strength. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

Walmart demonstrated a robust quarter, marked by a 4.5% gain in U.S. comparable sales, a slight expansion in EBIT (earnings before interest and taxes), and earnings that surpassed expectations. The company’s EBITDA stands at $42.22 billion, with a healthy gross profit margin of 24.85%. This positive outcome came despite the company’s early April decision to withdraw its first-quarter EPS guidance and the impact of several distinct pressures, such as product mix changes, insurance claims, and tariff-related pricing adjustments.

In response to the current economic climate, Walmart cautiously hedged its near-term earnings outlook due to the potential effects of tariffs and retail inventory method (RIM) accounting for the second quarter. However, the company also conveyed a sense of confidence in meeting its full-year financial expectations.

The analyst at Truist Securities highlighted Walmart’s continued growth in market share across various categories and demographics, attributing this success to the company’s value proposition and convenience. As a prominent player in the Consumer Staples Distribution & Retail industry, Walmart has maintained dividend payments for 53 consecutive years, demonstrating remarkable stability. Additionally, alternative revenue streams were noted as contributing to margin improvements. InvestingPro subscribers can access 12 more key insights about Walmart’s market position and financial health.

Walmart’s ability to operate as both an offensive and defensive growth vehicle was emphasized, reinforcing the analyst’s recommendation for investors to buy Walmart shares. The new price target of $111 reflects the firm’s positive outlook on the retailer’s financial trajectory.

In other recent news, Walmart reported its financial results for the first quarter of fiscal year 2026, surpassing market expectations with an earnings per share (EPS) of $0.61, exceeding the forecast of $0.58. The company’s revenue reached $165.61 billion, slightly above the anticipated $165.60 billion. Walmart’s U.S. comparable sales grew by 4.5%, outperforming the consensus estimate of 3.9%, while Sam’s Club saw a notable increase in comparable sales by 6.7%, compared to the anticipated 4.5%. E-commerce sales surged by 22%, contributing to the company’s profitability, marking the first time the e-commerce segment achieved profitability globally. Citi analysts maintained a Buy rating for Walmart stock, with a price target of $120, citing the company’s robust first-quarter results and the affirmation of its yearly outlook as positive indicators. Despite the earnings beat, Walmart’s management abstained from providing second-quarter operating income or EPS guidance, citing the unpredictable economic landscape. However, they projected a healthy increase in second-quarter sales, estimating a rise of between 3.5% to 4.5%. Walmart reaffirmed its full-year sales growth guidance of approximately 4% and expects to grow operating income faster than sales.

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