Walmart (WMT) PT Raised to $149 at Stifel
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Stifel analyst Mark Astrachan raised the price target on Walmart (NYSE: WMT) to $149.00 (from $145.00) while maintaining a Hold rating following earnings.
The analyst commented, "We lift F2023-F2024 EPS estimates slightly and our price target to $149, 12x F2024E EBITDA, reflecting better-than-preannounced F2Q results. We continue to see more upside than downside for WMT shares at current levels. While U.S. consumer spending remains volatile, guidance implies EBIT margin will trough in F3Q. We view this as reasonable, anticipating lessening margin/cost pressure from inflation and markdowns. Relatedly, inventory levels improved slightly sequentially in F2Q23, down 2% from F1Q23, with additional actions planned for F3Q, resulting in more balanced levels for Holiday 2022. We also view guidance for an approximate 3% U.S. comp in F2H23 as somewhat conservative based on anticipated contribution from inflation and commentary that traffic/sales trends broadly improved in July and into August compared to June levels. We think this reflects sequentially lower gasoline prices from mid-June highs, which has an outsized impact on Walmart’s lower-income consumer."
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change
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