Goldman Cuts Walmart Target as Valuation Stretched After Selloff
Goldman Sachs has downgraded its price target for Walmart (WMT) to $130 from $141, while maintaining a Buy rating. The move follows a brutal post-earnings selloff that saw Walmart shares drop over 9% on Thursday.
The analyst, Kate McShane, cited stretched valuation as the reason for the reduced target and also trimmed her 2026 earnings-per-share forecast by about 2%. Despite this more cautious view, Goldman remains bullish on Walmart's prospects, pointing to the retailer's investments in pricing, marketplace expansion, and improving e-commerce profitability.
Walmart's recent quarterly results provided some support for this outlook, with adjusted earnings reaching $0.81 per share, beating analyst estimates of $0.74, while revenue came in at $187.9 billion versus expectations of $186.75 billion. The company also raised its 2026 guidance.