TD Cowen has revised upward its price objective on Walmart Inc. shares to $145 from $136 and maintained a Buy rating, highlighting the company's prospects as an artificial intelligence retail leader. The firm emphasized Walmart's positioning to benefit from conversational commerce - where customers express intentions or goals rather than relying on traditional keywords or shopping lists - as a structural change for retail interaction.
Walmart shares were trading at $122.55 at the time of the note, giving the company a market capitalization of roughly $975 billion. TD Cowen pointed to the retailer's recent performance and operating characteristics, including value and convenience positioning and solid free cash flow generation, as underpinning its positive stance.
The analyst action followed Walmart's fourth-quarter results, which showed upside that helped drive a 29.7% total return for the stock over the past year. Management's guidance was described as consistent with the company's long-term algorithm of approximately 4% sales growth and approximately 4% to 8% operating income growth. That guidance aligns with Walmart's actual revenue growth of 4.3% over the prior twelve months.
TD Cowen noted that the guidance landed below Street expectations, a shortfall the firm said it had anticipated. Despite that, the broker reiterated its Buy rating along with the higher price target.
Valuation remains a talking point: Walmart trades at a price-to-earnings ratio of 44.13. InvestingPro analysis included in recent coverage indicates the stock appears overvalued relative to its Fair Value. Investors using that platform can access a Most Overvalued stocks list and additional analytical content, including ProTips on Walmart.
Other broker reactions to Walmart's quarterly results were mixed but generally tilted toward higher targets. Telsey raised its price target to $140 while keeping an Outperform rating, citing the company's defensive product mix and technology investments. KeyBanc reiterated an Overweight rating with a $145 price target, pointing to strong fourth-quarter performance and investments in the supply chain.
Bernstein increased its price target to $134, highlighting improvements in e-commerce profitability and growth in global advertising revenue. By contrast, HSBC moved to a Hold rating from Buy but still lifted its price target to $131. HSBC's analyst Joe Thomas said the firm had trimmed earnings forecasts in response to what it views as conservative guidance from Walmart.
Walmart also reported fourth-quarter results for 2026 that beat consensus on both the top and bottom lines. The company posted earnings per share of $0.74 versus expectations of $0.73, and revenue of $190.7 billion compared with the anticipated $190.4 billion. These actual results contributed to the round of analyst revisions.
Collectively, the analyst moves reflect differing interpretations of Walmart's near-term guidance, valuation, and the company’s investments in technology and supply chain capabilities. While several firms raised price targets and affirmed positive ratings, valuation concerns and a conservative outlook prompted a more cautious stance from at least one major broker.