Overview
Piper Sandler reiterated an Overweight rating on Walmart Inc. and maintained a $130.00 price target on the stock. That target sits near Walmart's prevailing share price of $133.89 and is approximately 0.99% below the company's 52-week peak of $134.65. According to InvestingPro data cited by the analysts, Walmart shares are trading at a premium to their calculated Fair Value.
Quarterly expectations and timing
The firm models fourth-quarter comparable sales of +5.0%, above the Street consensus of +4.3% and accelerating from the prior quarter's +4.5% comp gain. Piper Sandler anticipates the retailer will report results that are in line with or exceed those expectations when it releases fourth-quarter results on February 19th, two days from now.
Walmart reported trailing twelve-month revenue of $703.06 billion, a figure the analysts note when framing their outlook on the company’s ability to sustain growth momentum across its large-scale retail operations.
Drivers of growth
Piper Sandler points to several company-specific growth vectors. U.S. e-commerce remains a meaningful contributor, posting year-over-year growth of +28% in the third quarter. Additionally, Walmart Connect, the retailer's advertising business excluding the VIZIO integration, delivered year-over-year growth of +33% in Walmart U.S. in the same period.
The integration of VIZIO continues to progress, and the analysts expect that process to support further acceleration in advertising revenue tied to Walmart Connect. Those trajectories are part of why Piper Sandler retains a constructive stance on Walmart's near-term growth profile.
Category and pricing dynamics
Pricing rollbacks were reported as flat in the third quarter. Piper Sandler's apparel pricing review suggests Walmart's value-oriented, lower-price assortment could position the company to capture additional share in apparel during the fourth quarter; Walmart has called out apparel growth in the mid-single digits (+MSD%) in Q3. Late in Q4, the firm notes that Winter Storm Fern likely prompted consumer stock-ups on need-based items and grocery, a category that represents roughly 60% of Walmart's sales.
Currency and financial health
Analysts flag currency exchange rates as a headwind for the fiscal year while expecting them to act as a tailwind in Q4. InvestingPro assigns Walmart an overall financial health score of "GOOD," with particular strength noted in profit metrics and price momentum, according to the analysis referenced by Piper Sandler. For investors seeking more granular coverage, InvestingPro's Pro Research Report on Walmart and its broader dataset covering more than 1,400 U.S. equities are available.
Market position and valuation context
Walmart's market capitalization sits at $1.07 trillion, underscoring its standing in the Consumer Staples Distribution & Retail industry. That market value is cited alongside the firm’s performance metrics to explain why several brokerages have issued positive assessments and adjusted targets in recent weeks.
Analyst landscape
Other brokerages have also moved to higher price targets for Walmart. RBC Capital, BTIG and Oppenheimer have each raised their targets to $140, citing the retailer’s positioning and expectations for a strong seasonal period. RBC Capital retains an Outperform rating and projects a 2027 earnings-per-share figure of $3.33, which the firm notes is slightly above consensus. BTIG keeps a Buy rating and models fourth-quarter EPS of $0.72 alongside U.S. comparable sales growth of 4.5%.
UBS has reiterated a Buy rating with a $135 price target, noting heightened debate among market participants around Walmart’s recent stock performance. In a separate company item, Barclays has maintained an Equalweight rating on Kroger, pointing to the appointment of Greg Foran as CEO as a positive development for that competitor.
Summary of expectations: Piper Sandler expects Walmart to report at or above consensus for Q4, driven by comp growth, robust e-commerce expansion and increasing advertising revenue from Walmart Connect. The firm's $130 target sits close to current market levels, while other analysts have moved targets higher amid continued operational momentum.