Walmart Inc. saw its stock rise approximately 1.1% in early trading Wednesday, recovering from a prior session decline, as several analyst firms increased their price targets ahead of the retailer's upcoming earnings report.
Analysts Raise the Bar
RBC Capital lifted its target to $140 from $126, maintaining an Outperform rating while noting high expectations for the February 19 report. The firm projects adjusted earnings per share of $0.72 and U.S. comparable sales growth of 4.2% for the quarter. Similarly, BTIG raised its target to $140 from $125, keeping a Buy rating and highlighting Walmart's ongoing integration of physical and digital operations. BTIG anticipates EPS of $0.72 and U.S. comp sales growth of 4.5%.
Wells Fargo and Oppenheimer also increased their price targets to $140 this week. Analysts pointed to strong grocery demand and growth in higher-margin segments like advertising as positive factors, but cautioned that Walmart's current valuation leaves little room for disappointment.
Legal Headwind Emerges
Investor focus was also drawn to a new legal challenge. Estée Lauder filed a federal lawsuit in California, alleging that Walmart permitted the sale of counterfeit beauty products on its website. Walmart had not publicly commented on the allegations at the time of reporting.
As a bellwether for U.S. consumer spending, Walmart's performance and outlook are closely watched for signs of economic pressure. The stock traded between $126.45 and $128.18 during the session, closing Tuesday at $126.70 before Wednesday's gain to $128.13.
With the fourth-quarter fiscal 2026 results scheduled for release on February 19, market participants will scrutinize management's guidance, U.S. comparable sales figures, and updates on initiatives in advertising and marketplace services.
