Jefferies has updated its outlook on Walmart Inc. (NYSE: NYSE:WMT), increasing the retail giant's price target to $90 from the previous $85, while reiterating a Buy rating on the stock.
The adjustment follows a recent investor dinner with senior Walmart executives, which provided insights into the company's e-commerce business and technological advancements.
During Tuesday's event, Jefferies had the opportunity to engage with Manish Joneja, Senior Vice President of Walmart U.S. Marketplace & Walmart Fulfillment Services (WFS), and Steph Wissink, Senior Vice President and Head of Investor Relations.
The discussions spanned various subjects, including Walmart's e-commerce strategies and the anticipated profitability trajectory for this segment, as well as the company's use of artificial intelligence (AI).
The analyst from Jefferies expressed a reinforced belief in Walmart's potential, citing the strength of their conviction based on the insights shared at the dinner. This bolstered confidence and led to the decision to raise the price target for Walmart shares.
Walmart's focus on expanding its e-commerce operations and integrating AI technology has been a key factor in the company's strategy to maintain its competitive edge in the retail market. The feedback from the investor dinner indicates that these initiatives are progressing positively, which has been acknowledged by the market analyst.
In other recent news, Walmart Inc. has been the focus of several financial firms revising their outlook on the retail giant's stock. Evercore ISI raised its price target for Walmart to $80, maintaining an Outperform rating, following the company's divestiture of its stake in JD (NASDAQ:JD).com. This transaction, totaling $3.7 billion, is seen as a strategic move by Walmart to enhance return on invested capital.
In a similar vein, DA Davidson reiterated a Buy rating and a price target of $85 for Walmart, citing the company's ability to increase market share and grow profit margins. KeyBanc also maintained an Overweight rating and a price target of $82, following Walmart's impressive second-quarter results.
TD Cowen showed continued confidence in Walmart by increasing the company's price target from $80 to $85, maintaining a Buy rating.
InvestingPro Insights
Jefferies' recent price target increase for Walmart Inc. (NYSE:WMT) aligns with some of the positive sentiment observed in the market. According to real-time data from InvestingPro, Walmart's revenue growth in the last twelve months as of Q2 2025 is 5.43%, with a notable gross profit margin of 24.63%. This financial health is a testament to the company's robust operations and its ability to adapt and grow in a competitive retail landscape.
InvestingPro Tips for Walmart highlight the company's long-standing reliability in returning value to shareholders, with a track record of raising its dividend for 52 consecutive years. This consistency is a positive indicator for investors seeking stable dividend-paying stocks. Additionally, Walmart's significant market capitalization of $620.31 billion USD underscores its status as a prominent player in the Consumer Staples Distribution & Retail industry. For investors interested in exploring further, there are over 17 additional InvestingPro Tips available, providing a deeper dive into Walmart's financial metrics and market position.
While the P/E ratio suggests a premium valuation at 40.24, reflecting market confidence, it's important for investors to consider the company's strategic initiatives in e-commerce and AI technology that could justify such a valuation over the long term. With a price hovering near its 52-week high and a strong return over the last three months of 16.2%, Walmart's stock performance mirrors the company's operational success and market optimism.
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