Evercore ISI raised its price target on Walmart Inc. (NYSE:WMT) to $135 from $130 on Monday and reiterated an Outperform rating, highlighting the company’s swift digital expansion and growth in higher-margin lines of business as reasons for the adjustment.
Digital and higher-margin streams drive the call
In its note, Evercore ISI flagged Walmart’s digital sales growth of 27%, which the firm estimates has pushed digital revenue to about $100 billion in the U.S. and roughly $150 billion globally. The analyst team said Walmart’s guidance for 6% earnings per share growth appears conservative in light of faster expansion in advertising, membership fees and digital operations - segments that typically carry higher margins.
Valuation sits as a counterweight
Evercore’s optimism is tempered by valuation concerns. The note cites a price-to-earnings multiple of 45.05 for Walmart and a market capitalization of $980 billion. Internal analysis referenced by their research indicates the stock looks overvalued relative to its Fair Value and places it among names on the Most Overvalued list.
Recent operating snapshot
- Traffic rose 2.6% in the fourth quarter.
- U.S. comparable sales increased 4.6%.
- Global EBIT margin expanded by 10 basis points.
The company’s global advertising business recorded 30% growth to $6.4 billion, while combined membership and financial inclusion revenue climbed to $4.3 billion, according to the same reporting period. Evercore ISI also noted Walmart Plus membership has reached roughly 20 million households.
Modest EPS adjustments amid specific headwinds
To account for liability claims, lower other income and investments in grocery pricing, Evercore ISI trimmed its earnings per share forecasts by 1%, setting estimates at $3.00 and $3.35 for the respective periods cited in the note. The firm additionally removed a prior Underperform Tactical Absolute Performance rating it had issued on Feb. 17, noting that the stock had fallen 7% while the S&P 500 rose 1% since that call.
Evercore highlighted that the new $135 target equates to about 40 times calendar year 2027 earnings estimates.
Industry and peer reaction
Walmart has attracted a series of raised targets from other major firms, reflecting a range of bullish views on its strategy and operational execution:
- Barclays increased its target to $132, pointing to unit share gains and potential benefits from modest inflation in fiscal 2027.
- UBS raised its target to $147, citing robust ecommerce growth that sustained comparable sales momentum in the U.S. during the fourth quarter.
- Truist Securities set a new target of $139 after noting U.S. comparable sales rose 4.6%, slightly above their estimate, as Walmart closed calendar year 2025 on a positive note.
- DA Davidson lifted its target to $150, highlighting the retailer’s deployment of automation and alternative business strategies to bolster margins.
- TD Cowen established a $145 target, flagging Walmart’s leadership in artificial intelligence applications within retail and the promise of conversational commerce to reshape customer interactions.
These updates underscore market attention on Walmart’s efforts to use technology and strategic investments to reinforce its competitive position across retail, ecommerce and advertising.
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This report presents the analyst actions and company metrics noted by Evercore ISI and other research firms. It focuses on the data and guidance as reported and on the explicit adjustments and rationale disclosed by the analysts cited.