Walmart Stock Slumps After Earnings Report Shows Slowing Sales Growth

The stock price of Walmart (WMT) fell by 9.2% on Thursday after its quarterly earnings report exceeded expectations, but showed a slowing comparable sales growth and pricing changes in health and wellness.

Goldman Sachs lowered its target price for Walmart to $130 from $141 while maintaining a Buy rating. The investment bank highlighted the raised second-half outlook, driven by price investments and marketplace growth, as well as improving eCommerce profitability with Walmart US eCommerce delivering double-digit incremental margins in the first half.

BofA Securities also cut its target price to $126 from $144 while keeping a Buy rating. Both Goldman Sachs and BofA cited the deceleration in US comparable sales excluding fuel to 2.6% as a reason for their revised targets. However, they remain optimistic about Walmart's ability to take market share on value and convenience.