Walmart Inc (WMT) has impressed analysts with its strong second-quarter earnings report, highlighting market share gains and improved gross margins. A chorus of analysts have issued positive ratings and increased price targets, reflecting confidence in the company’s future performance.
Bank of America analyst Robert Ohmes reiterated a Buy rating and raised the price target from $75 to $85, citing strong revenue and gross margin momentum. He attributed this to market share gains across all income levels, including higher-income earners, and the success of initiatives like digital advertising, third-party marketplace, and fulfillment services.
KeyBanc analyst Bradley Thomas echoed this sentiment, reiterating an Overweight rating and a $82 price target. He described Walmart’s ‘flywheel’ as accelerating, driven by broad market share gains and initiatives that position the company as a compelling investment opportunity. Thomas also highlighted Walmart’s increasing market share in grocery, a positive sign for the company’s future growth.
BMO Capital analyst Kelly Bania also maintained an Outperform rating with a $80 price target, emphasizing the impressive e-commerce momentum and improved profitability demonstrated in the earnings report. Bania highlighted the consistency of Walmart’s top-line revenue in a challenging consumer environment where many retailers have struggled.
Truist analyst Scot Ciccarelli maintained a Hold rating but raised the price target from $64 to $76. He praised the company’s improving margins and e-commerce scaling, suggesting that Walmart’s continued market share gains have likely offset any broader consumer slowdown.
Goldman Sachs analyst Kate McShane reiterated a Buy rating and increased the price target from $73 to $81, impressed by Walmart’s improved results for general merchandise. McShane believes the company is well positioned for continued earnings growth due to its value and convenience proposition, which resonates with customers across all income levels.
RBC Capital analyst Steven Shemesh maintained an Outperform rating and increased the price target from $74 to $80, describing Walmart as a unique way for investors to play defense. He emphasized the impressive top-line growth, driven by market share gains rather than a stable U.S. consumer market.
Piper Sandler analyst Peter Keith reiterated an Overweight rating and raised the price target from $81 to $83, highlighting the impressive sales upside across all business segments, particularly the contribution from e-commerce driven by delivery momentum. He also pointed to advertising and membership revenue as drivers of future EBIT growth.
Walmart shares are currently trading at $73.30, up 40% year-to-date in 2024. The stock’s performance reflects the market’s confidence in the company’s ability to continue to grow and thrive in a challenging economic environment.
