Futures slip, bank earnings ahead, Powell to speak - what’s moving markets
On Friday, Raymond (NSE:RYMD) James analysts adjusted their outlook on Walmart Inc. (NYSE:WMT), reducing the retail giant's price target from $115.00 to $105.00, while maintaining an Outperform rating on the stock. Currently trading at $90.61, Walmart has demonstrated strong momentum with a 52.49% return over the past year. The adjustment follows Walmart's recent Investment Community Meeting and facility tours in Dallas, Texas. According to InvestingPro data, analyst targets for the stock range from $63 to $120, reflecting diverse market perspectives.
The company showcased a variety of developments, including a fully automated e-commerce fulfillment center, a perishable distribution center, a remodeled Supercenter, and a next-generation Sam's Club. These site visits highlighted Walmart's ongoing multi-year transformation, focusing on automation, merchandising, and a shift towards a high-margin business mix. The strategy appears to be working, with InvestingPro data showing a healthy gross profit margin of 24.85% and revenue growth of 5.07% over the last twelve months. According to Raymond James analysts, more than two-thirds of Walmart U.S. EBIT growth is anticipated to stem from these areas.
Despite the reduction in the price target, the analysts' positive stance on Walmart remains firm. The retailer's reaffirmation of its first quarter 2026 and full fiscal year 2026 guidance was seen as a testament to the resilience of its business model, which includes a strong value proposition and convenience offering. Walmart also continues to gain market share across various income groups and is executing on higher-margin initiatives such as advertising technology, automation, and membership programs.
Raymond James analysts believe that these initiatives not only have significant growth potential but also indicate a more sustainable profit stream with the possibility of margin expansion in the years ahead. This outlook is underpinned by Walmart's strategic moves and its ability to adapt to changing market conditions while maintaining a focus on profitable growth.
In other recent news, Walmart has been the focus of several analyst assessments following its recent investor events. UBS analyst Michael Lasser adjusted Walmart's price target to $110, maintaining a Buy rating, highlighting the company's agility and strategic plans to increase revenue and profitability. RBC Capital Markets also revised its price target, lowering it to $102 while keeping an Outperform rating, citing challenges in the sales landscape and potential tariff impacts. BMO Capital Markets maintained its $110 price target and Outperform rating, commending Walmart's advancements in supply chain automation and omni-channel capabilities.
JPMorgan analysts reiterated an Overweight rating with a $112 price target, noting Walmart's steady performance and ability to capture market share during uncertain times. Piper Sandler also maintained an Overweight rating with a $114 price target, emphasizing Walmart's omni-channel model and its potential for long-term growth. These assessments underscore the confidence in Walmart's strategic direction and its capacity to navigate current market challenges. Despite the varying price targets, the general sentiment remains positive among analysts about Walmart's future prospects.
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