Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Walmart shares price target cut to $67 from $200 on stock split adjustment

Published 26/02/2024, 14:02
Updated 26/02/2024, 14:02
© Reuters

On Monday, Oppenheimer revised its price target for Walmart (NYSE:WMT), dropping it significantly to $67.00 from the previous $200.00. Despite the substantial adjustment, the firm maintains an Outperform rating on the retail giant's shares. The change in the price target is attributed to Walmart's recent 3-for-1 stock split, which took effect on the market today.

The stock split has adjusted the value of each share, warranting a recalibration of the price target to align with the new share structure. Following the split, the valuation of Walmart shares requires investors to consider the increased number of shares in circulation when assessing the company's market value.

Oppenheimer's adjustment reflects the mathematical impact of the stock split on the share price, rather than a change in the perceived value or performance of Walmart as a company. The new price target of $67 is directly proportional to the previous target, considering the tripling of the share count.

The firm reiterates its positive outlook for Walmart, signaling confidence in the company's prospects. Despite the reduction in the price target, the Outperform rating suggests that Oppenheimer continues to see Walmart as a favorable investment opportunity with potential for growth.

"WMT remains a top pick for us", Oppenheimer analyst says.

Investors and market watchers should note that the updated price target is a technical response to the stock split and does not indicate a shift in the fundamental assessment of Walmart's business or financial outlook. The retailer remains a top pick for Oppenheimer following the adjustment.

InvestingPro Insights

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

With the recent 3-for-1 stock split of Walmart (NYSE:WMT), investors are keenly watching the retail giant's market metrics and performance indicators. A dive into the real-time data from InvestingPro reveals a company with a robust market presence and a history of financial consistency. Walmart's adjusted market capitalization stands at a solid $471.25 billion, underscoring its heavyweight status in the retail sector.

One notable InvestingPro Tip highlights Walmart's impressive track record of raising its dividend for 28 consecutive years, signaling a strong commitment to returning value to shareholders. This is further reinforced by the company's ability to maintain dividend payments for an even longer period of 52 consecutive years. Such a consistent dividend history often appeals to investors looking for reliable income streams.

When it comes to valuation, Walmart's price-to-earnings (P/E) ratio is currently at 30.59, and its price-to-book (P/B) ratio over the last twelve months as of Q4 2024 is 5.62. Although the P/E ratio suggests a premium relative to near-term earnings growth, Walmart's status as a prominent player in the Consumer Staples Distribution & Retail industry justifies investor confidence to some degree. Additionally, the company's revenue growth over the last twelve months was 6.03%, indicating a healthy expansion in its business operations.

For those seeking further insights and investment tips, there are additional InvestingPro Tips available for Walmart, which can be accessed through the InvestingPro platform. Prospective investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert analysis to inform their investment decisions.

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

As market participants digest Oppenheimer's updated price target, these InvestingPro metrics provide a broader context for evaluating Walmart's financial health and investment potential post-stock split. With 17 analysts having revised their earnings downwards for the upcoming period, it's crucial for investors to stay informed with the latest data and trends.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.