Walmart price target raised to $70 from $62 at RBC Capital

RBC Capital analyst Steven Shemesh raised the firm’s price target on Walmart to $70 from $62 and keeps an Outperform rating on the shares after its Q1 earnings beat. The company’s top-line remains healthy, its inventory levels are being managed effectively, and the solid growth of its high margin business is resulting in strong flow-through, the analyst tells investors in a research note. While the stock looks historically expensive, a growing profit contribution from advertising and membership income supports a re-rating, the firm adds.