Walmart (WMT – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Mark Astrachan from Stifel Nicolaus maintained a Hold rating on the stock and has a $99.00 price target.
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Mark Astrachan has given his Hold rating due to a combination of factors affecting Walmart’s financial outlook. The company recently reported disappointing fourth-quarter results for fiscal 2025, prompting a reduction in its earnings per share estimates for fiscal years 2026 and 2027 by approximately 3%. Despite this, Astrachan raised the price target slightly to $99, attributing this to Walmart’s robust business model that continues to grow operating profit ahead of sales while maintaining market share gains.
The initial guidance for fiscal 2026 is viewed as conservative, aligning with the company’s trend in recent years. Walmart’s continued market share gains in U.S. grocery and general merchandise, along with strategic investments in technology and supply chain automation, are expected to drive profitability. However, potential risks such as tariff impacts and uncertainties related to macroeconomic conditions have influenced the decision to maintain a Hold rating, reflecting a cautious yet optimistic outlook on the company’s ability to navigate these challenges.