Walmart Shares: Analyst Outlooks and Price Targets
Key Insights
Morgan Stanley analysts emphasize the often-overlooked profit margins driving Walmart's reinvestment strategy, fueled by e-commerce and financial services. Their price target is slightly above the consensus estimate of $109, with an optimistic scenario projecting shares reaching $150.
However, some analysts remain cautious, citing potential challenges due to strong prior performance and upcoming earnings. Bank of America analysts anticipate "tough comparisons" with industry peers.
Morgan Stanley's Bullish Outlook
Morgan Stanley believes Walmart's strong profit margins provide the means for investing in technology that drives efficiency in its e-commerce operations. The firm's price target of $115 represents a 10% premium over the current market value. Their bullish scenario sees shares surpassing $150, exceeding current analyst projections.
Limited Upside Potential
In contrast, Bank of America analysts anticipate limited multiple expansion beyond current levels. They maintain a "buy" rating, but acknowledge potential obstacles due to elevated expectations and comparisons with peers.
Analyst Consensus
Overall, analysts maintain a positive outlook for Walmart shares. The average consensus price target is around $109, with expectations of approximately $180.4 billion in revenue and $5.2 billion in net income for the fourth quarter. For the full fiscal year, analysts anticipate revenue of $680.9 billion and a 12% increase in net income to $20.1 billion.