Bank of America Securities analyst Robert Ohmes maintained a Buy rating on Walmart yesterday and set a price target of $120.00.
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Robert Ohmes has given his Buy rating due to a combination of factors that highlight Walmart’s strong market position and growth potential. The company is expected to report a solid second quarter with an adjusted EPS of $0.70 and a 3.5% increase in U.S. comparable sales. Despite the lack of specific guidance on EBIT or EPS due to the dynamic environment, Walmart’s ability to manage tariffs effectively through its scale, pricing strategies, and inventory management is a significant advantage.
Walmart’s integration of grocery, general merchandise, and pharmacy into a single order, along with its expansion of same-day delivery, enhances its competitive edge in convenience and value. The company’s digital advertising and e-commerce profitability, driven by ancillary businesses and marketplace growth, further bolster its long-term profitability outlook. Although the current valuation is high, it is justified by Walmart’s continued share gains across various product categories and income segments, particularly among higher-income consumers.
Ohmes covers the Consumer Defensive sector, focusing on stocks such as Target, Costco, and Dollar General. According to TipRanks, Ohmes has an average return of 8.5% and a 59.69% success rate on recommended stocks.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $110.00 price target.