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On Friday, UBS analyst Michael Lasser maintained a Buy rating on Walmart stock (NYSE:WMT) with a steady price target of $110.00. This aligns with the broader analyst consensus of 1.51 (Strong Buy), with price targets ranging from $63 to $120. Lasser’s outlook for Walmart is positive, highlighting the retailer’s potential to demonstrate why it should be considered a fundamental investment, especially in light of its upcoming first-quarter earnings report, scheduled for May 15. According to InvestingPro, 17 analysts have recently revised their earnings expectations downward for the upcoming period.
Lasser anticipates that Walmart’s first-quarter results will reinforce the company’s position as a strong performer within the retail sector. With a market capitalization of $776 billion and revenue of $681 billion in the last twelve months, Walmart continues to dominate the retail landscape. He expects the company to reiterate its annual outlook, initially maintained during its Investment Community Meeting in April. The analyst suggests that Walmart’s predictable earnings will contribute to its outperformance in the stock market, supported by its impressive 62.5% return over the past year. For deeper insights into Walmart’s valuation and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 top US stocks.
The backdrop of Lasser’s analysis includes ongoing discussions in the retail sector about tariffs and their possible effects on the economy, retailers, and consumers in the United States. Despite these uncertainties, Lasser believes that Walmart is among the few retailers poised to generate consistent earnings, which investors are currently seeking. The company’s stability is evidenced by its 30-year track record of consecutive dividend increases and maintained dividend payments for 53 consecutive years.
As the year progresses and the operating environment potentially becomes more challenging, Lasser predicts that Walmart’s favorable positioning compared to other retailers will become increasingly apparent. He asserts that this is when Walmart’s strengths will be even more distinguishable, solidifying its standing in the market.
Walmart’s resilience and strategic advantages in dealing with economic pressures, such as tariffs, position it to potentially outshine its competitors and attract investors looking for stability in the retail sector.
In other recent news, Walmart Inc. has made significant strides in both construction innovation and strategic partnerships. A collaboration with Alquist led to the completion of a 5,000-square-foot expansion at the Owens Cross Roads Supercenter using advanced 3D Concrete Printing technology, which reduced costs and material waste while speeding up construction time. Analysts have also weighed in on Walmart’s financial outlook. RBC Capital Markets maintained its Outperform rating with a $102 price target, noting slight adjustments to sales and profit growth estimates but keeping earnings per share projections stable. Morgan Stanley (NYSE:MS) reaffirmed an Overweight rating with a $115 target, highlighting a notable increase in Walmart+ membership, which is contributing to double-digit income growth. DA Davidson maintained a Buy rating with a $117 target, anticipating Walmart’s upcoming earnings report to reveal market share gains and comparable sales growth. Additionally, Walmart has entered a partnership with Upstart (NASDAQ:UPST) through its fintech arm, OneProgress Services LLC, to market consumer lending products. This partnership is expected to leverage Walmart’s extensive customer base, potentially enhancing Upstart’s market presence.
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