TD Cowen Lifts Walmart Price Target to $145, Backs 6%–8% Income Growth
TD Cowen raised Walmart’s price target to $145 from $136 and reiterated its Buy rating, citing AI-enabled retail’s potential to reshape shopping behaviors. Walmart projected fiscal 2027 constant-currency sales growth of 3.5%–4.5%, operating income growth of 6%–8% and EPS of $2.75–$2.85 while outlining a $30 billion share repurchase.
1. Analyst Price Target Increase
TD Cowen raised Walmart’s price target to $145 from $136 and reiterated a Buy rating, highlighting the company’s AI-enabled retail initiatives as a structural advantage in conversational commerce.
2. Fiscal 2027 Guidance and Financial Performance
Walmart forecast constant-currency sales growth of 3.5%–4.5%, operating income expansion of 6%–8% and EPS of $2.75–$2.85 for fiscal 2027, supported by $42 billion in operating cash flow and an 18% year-over-year increase in free cash flow.
3. E-commerce Growth and Capital Allocation
Global e-commerce sales rose 24% for the quarter and nearly 25% for the year, exceeding $150 billion in annual sales, while Walmart authorized a new $30 billion share repurchase program and plans capital expenditures equal to 3.5% of sales for automation and remodel investments.