Walmart stock: BofA raises target to 139 dollars

Bank of America raised its Walmart price target to 139 dollars from 126 dollars on Wednesday, November 11, while keeping a Buy rating, according to MT Newswires via Fidelity. The broker expects the retailer to maintain market-share gains across grocery and general merchandise ahead of its fiscal third-quarter report.

Walmart stock traded at 114.21 euros on Lang & Schwarz at 3:00 p.m. CET on Thursday, November 12, 1.86 percent above the Xetra close of Wednesday, November 11. The comparison uses the previous Xetra session because the current trading window had not reached the 5:35 p.m. CET threshold for using the same day's close.

Estimates set the earnings hurdle

BofA forecasts adjusted earnings of 0.63 dollars per share for the quarter and US comparable-sales growth of 2.8 percent excluding fuel. The broker also expects Walmart to move its full-year sales and earnings guidance toward the upper end of its existing ranges.

That view places the November 19 report at the center of the near-term case for the shares. Walmart is expected to report before the US market opens, giving investors a fresh read on consumer demand, grocery momentum and the retailer's ability to defend its value proposition.

Digital growth remains in focus

BofA said investors want to see faster US comparable-sales growth excluding health and wellness. The broker is also seeking greater confidence that Walmart's marketplace and advertising operations can support stronger earnings growth next year.

The emphasis reflects a shift in how the retailer is being assessed. Grocery and general merchandise remain central to Walmart's scale advantages, while marketplace and advertising offer higher-margin growth avenues that could help fund price investments and convenience initiatives. The upcoming figures should show whether those businesses are becoming a more meaningful earnings driver.

The guidance question is equally important. A move toward the upper end of the existing outlook would reinforce the view that Walmart can combine market-share gains with resilient profitability. A cautious update, by contrast, would leave investors focused on valuation and the pace at which digital businesses translate growth into profit.

The S&P 500 provides the broader US equity market backdrop for Walmart stock.

Investors will next compare Walmart's sales and profit performance with its guidance and watch whether management strengthens the outlook for the full fiscal year. More news and analyses on Walmart stock.