Walmart Remains A Top Pick - This Analyst Is Optimistic On Increased Market Share And Profitability

Oppenheimer analyst Rupesh Parikh reiterated an Outperform rating on Walmart Inc WMT with a price target of $67.

The analyst adjusted his estimates and price target on Walmart shares to reflect the company’s 3-for-1 stock split. Shares will begin trading on a post-split basis starting on February 26. 

Also Read: Walmart’s Expanded Vision Beyond Retail In Focus: Analyst Forecasts Higher Profits, Solid Customer Relations

Parikh’s share price target goes to $67 from $200 on a split-adjusted basis. Walmart remains a top pick for the analyst.

Parikh noted that Walmart shares are still positioned for outperformance. The analyst flagged Walmart’s potential for continued grocery share gains, increasing contributions from alternative revenue streams, ongoing benefits from Walmart’s e-commerce investments, and an improved international footprint as long-term positives. 

He noted these efforts should help to drive ~4% sales growth on average and operating income growth of 4%+ over time.

Walmart’s 12- to 18-month price target of $67 (split-adjusted) is predicated on a ~27x P/E multiple applied to his fiscal 2025 (January 2026) EPS forecast of $2.50, equivalent to an EV/EBITDA multiple of ~13x. Parikh views this target P/E multiple as consistent with Walmart’s longer-term growth prospects and other discount retailers’ valuations.

Parikh projects a first-quarter revenue and EPS of $159.41 billion and $0.52.

Also Read: Walmart’s Q4 Earnings Beat And Strategic VIZIO Buy Impresses Analyst, Says Shares Poised to Rise

Price Action: WMT shares are trading higher by 1.9% to $59.63 on the last check Monday.

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