Walmart Stock Takes Hit as Analysts Trim Price Targets

Walmart's stock price took a hit on Friday after the company reported its second-quarter results. Analysts were mixed in their assessments, but most saw cause for caution.

JPMorgan analyst Christopher Horvers reiterated his Overweight rating on Walmart, but trimmed his price target from $137 to $125, citing a later Back-to-School season as a positive factor. He noted that the company's trend is likely to improve due to price investments driving better volumes, and said, 'Ultimately, we believe the next iteration is for buyside estimates to move up, not down.'

Guggenheim Securities analyst John Heinbockel maintained his Buy rating on Walmart, but cut his price target from $135 to $130. He described the company's tariff refund noise as a market reaction that was 'significantly adverse,' and said, 'the largest of TAMs' (total addressable markets) is still within reach, but the temporarily slowing sales and premium valuation make for 'a tough combo.'

RBC Capital Markets analyst Steven Shemesh also reiterated his Outperform rating on Walmart, while trimming his price target from $137 to $131. He noted that the company's constant currency operating income excluding the IEEPA tariff refund grew around 9.8%, coming at the top end of the 7.0%-10% guidance range.