Analysts Raise Walmart Targets to $150 After Q4 EPS Beat, Sales Up 5.6%
Walmart posted Q4 adjusted EPS of $0.74 (vs. $0.73 est.) and $190.70 billion in sales, up 5.6% versus a $190.43 billion forecast. Telsey Advisory Group, BTIG and DA Davidson reiterated buy ratings and raised price targets to $140–$150, citing AI investments and higher-margin alternative businesses.
1. Q4 Earnings and Revenue Beat
Walmart reported fourth-quarter adjusted EPS of $0.74, surpassing the $0.73 consensus, and delivered $190.70 billion in sales, up 5.6% year-over-year versus the $190.43 billion forecast.
2. Analyst Ratings and Price Target Raises
Telsey Advisory Group, BTIG and DA Davidson maintained outperform/buy ratings and raised their price targets to between $140 and $150, reflecting confidence in Walmart’s financial flexibility and long-term prospects.
3. Growth Drivers Highlighted
Analysts cited investments in AI and automation, along with growth in higher-margin segments such as membership services, advertising and marketplace, as key catalysts for accelerated operating income and ecosystem expansion.
4. Valuation Considerations
Walmart’s current valuation at around 42 times forward earnings drew scrutiny, but analysts view the premium as justified given the retailer’s diversified business mix and margin enhancement strategies.