UBS Reiterates Buy Rating on Walmart (WMT)

UBS analyst Michael Lasser reiterated a Buy rating and $110.00 price target on Walmart (NYSE: WMT).

The analyst commented, "We believe WMT's upcoming 2Q print will be about ‘checking the boxes’ above all else. The key is that the results are likely to show that WMT’s underlying momentum remains strong. It is in good position to generate its algorithm over a multi-year period. We think that this will make the market even more comfortable valuing the stock on ‘27 EPS. The stock’s valuation has become core to the debate with the naysayers asking if it should trade at a premium to AMZN that now trades at ~28.5x ‘26 EPS (vs. WMT at ~34x). We believe the argument in favor of WMT’s multiple is the combo of its unique opportunity for significant margin expansion over the coming periods (with its enterprise OM slated to be 4.2% this year vs. a peak of 6.1% in CY'10). Plus, the consistency and visibility of its business is another layer that contributes to WMT's multiple. These factors support its valuation and make the stock a core holding, in our view."

For an analyst ratings summary and ratings history on Walmart click here. For more ratings news on Walmart click here.

Shares of Walmart closed at $99.31 yesterday.

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