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Investing.com - DA Davidson has reiterated its Buy rating on Walmart (NYSE:WMT) stock with a price target of $117.00. This aligns with the broader market sentiment, as InvestingPro data shows 11 analysts have recently revised their earnings estimates upward, with analyst targets ranging from $64 to $127.
The research firm noted a shift in Walmart’s approach to tariff-related price increases compared to the previous quarter, when the retailer’s comments about potentially passing tariff costs to consumers attracted attention from the administration. As a prominent player in Consumer Staples with $693 billion in revenue and a market cap of $783 billion, Walmart’s pricing strategies carry significant weight in the retail sector.
DA Davidson observed that Walmart appears to have taken "less price than expected" during the current quarter, partly because "the worst case tariff scenario is off the table."
The firm’s analyst indicated that while Walmart’s tone seems different this quarter, it does not necessarily represent a fundamental strategy shift for the retailer.
Last quarter, Walmart had described price increases as "only one arrow in their quiver" for dealing with tariffs, an approach DA Davidson characterized as similar to most retailers’ strategies for managing potential tariff impacts.
In other recent news, Walmart reported mixed second-quarter results with a 5.6% growth in net sales in constant currency, surpassing its previous guidance. However, the company’s earnings per share fell short of expectations due to unplanned insurance claims and tariff dynamics. Despite these challenges, several analyst firms have maintained positive ratings on Walmart. BMO Capital reiterated its Outperform rating, while UBS and KeyBanc both reaffirmed their Buy and Overweight ratings, respectively, each setting a price target of $110. Truist Securities adjusted its price target to $109, citing discrete expenses but maintained a Buy rating. Meanwhile, Bernstein raised its price target to $117, attributing the increase to an improved earnings outlook. Analysts noted strong sales momentum with U.S. comparable sales growing by 4.6% and international sales growth exceeding 10% in constant currency. Walmart’s e-commerce growth and general merchandise sales also showed positive trends, contributing to its steady performance.
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