UBS Cuts Walmart Price Target to $141 After Q1 EPS and 26% E-commerce Growth
WMT•Walmart’s UBS price target was lowered to $141 from $147 after Q1 EPS of $0.66 and US comparable sales rose 4.1% (530 bps from e-commerce). The retailer reported 26% global e-commerce growth, 50% marketplace sales gains and affirmed 3.5–4.5% net sales and 6–8% operating income guidance.
1. UBS Lowers Price Target
UBS lowered its price target on Walmart to $141 from $147 after Q1 results fell short of elevated expectations, while maintaining a positive outlook on higher-margin revenue streams like advertising, marketplace fees and membership services.
2. Q1 Financial Performance
Walmart reported adjusted EPS of $0.66, US comparable sales up 4.1% (with 530 basis points from e-commerce), global e-commerce growth of 26%, marketplace sales up 50%, advertising revenue rising 37% and membership income up 17%.
3. Outlook and Guidance
Walmart expanded US gross margins by 30 basis points despite absorbing $175 million in fuel costs, reached 60% of the US population with 30-minute delivery, and reaffirmed guidance for 3.5–4.5% net sales growth and 6–8% operating income growth in constant currency.
