How are energy investors positioned?
Investing.com - RBC Capital has reiterated its Outperform rating and $106.00 price target on Walmart (NYSE:WMT), a $782.56 billion retail giant with a "GOOD" financial health score according to InvestingPro, despite a recent profit miss that the firm attributes to non-core items.
RBC noted that excluding higher accruals related to general liability claims, Walmart would be tracking toward fiscal year 2026 constant currency operating profit growth of 5.5-7.5%, which includes approximately 150 basis points of drag from cycling leap year and the Vizio acquisition. This outlook aligns with the company’s recent revenue growth of 4.23% and has prompted 11 analysts to revise their earnings estimates upward.
The firm highlighted Walmart’s continued top-line momentum and expects price gaps, particularly in grocery, to widen in the second half of the year, potentially supporting further market share gains for the retail giant.
RBC adjusted its third-quarter constant currency net sales growth estimate to 4.7%, up from its previous 3.3% projection, while adjusting its earnings per share estimate to $0.60 compared to the prior consensus of $0.55.
For fiscal years 2025 and 2026, RBC now models constant currency net sales growth of 4.6% and 5.0% respectively, with adjusted earnings per share of $2.63 and $3.02, maintaining its price target based on approximately 35 times its revised 2026 earnings estimate.
In other recent news, Walmart’s second-quarter earnings report has drawn varied reactions from analysts. The company reported strong sales momentum, with U.S. comparable sales growth of 4.6%, Sam’s Club growth of 5.9%, and international sales growth exceeding 10% in constant currency. However, the bottom line was impacted by unplanned insurance claims and general liability claims, which contributed to an earnings per share miss. Despite these challenges, several firms have maintained positive ratings on Walmart. DA Davidson reiterated its Buy rating with a price target of $117.00, noting a shift in the company’s approach to tariff-related price increases. BMO Capital also maintained its Outperform rating with a $110.00 target, acknowledging cost pressures. Truist Securities lowered its price target to $109.00 but kept a Buy rating, citing discrete expenses. UBS and KeyBanc have both reiterated their Buy and Overweight ratings, respectively, with a $110.00 price target, emphasizing steady U.S. comparable sales and e-commerce growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.