Analyst Ratings February 18, 2026

Truist Sticks With Buy on Walmart, Cites Higher-Income Customer Gain and Steady Sales Trajectory

Analyst maintains $127 target as card data points to in-line quarter and stronger spending among top-quartile customers

By Leila Farooq WMT
Truist Sticks With Buy on Walmart, Cites Higher-Income Customer Gain and Steady Sales Trajectory
WMT

Truist Securities reaffirmed its Buy rating on Walmart and kept a $127 price target, citing card-spend trends that indicate higher-income shoppers are increasingly using Walmart. The firm sees sales momentum consistent with its estimates and expects Walmart to guide toward roughly 3% to 4% sales growth through 2026; other sell-side firms have also raised targets and reiterated bullish views ahead of Walmart's fourth-quarter earnings report.

Key Points

  • Truist reaffirmed a Buy rating on Walmart and kept a $127.00 price target while the stock traded at $128.85 and a market cap of $1.03 trillion.
  • Truist card data indicated an in-line fourth-quarter result with U.S. comparable sales rising about 4.5%, matching the firm’s estimate; Walmart’s revenue growth was 4.34% over the trailing twelve months.
  • Spending among top-quartile Truist card customers outpaced other groups, supporting the view that expanded convenience and e-commerce options are attracting higher-income consumers and contributing to recent stock gains.

Truist Securities on Wednesday reiterated a Buy rating for Walmart Inc. (NYSE:WMT) and preserved its $127.00 price target. At the time of the note the stock was trading at $128.85, placing market capitalization at approximately $1.03 trillion.

The note relied in part on Truist card-payment data, which the firm said points to an in-line quarter. Specifically, Truist’s data showed U.S. comparable sales for the fourth quarter rose in line with its forecast of a 4.5% increase. That figure sits alongside Walmart’s reported revenue growth of 4.34% over the past twelve months.

Truist highlighted a pronounced spending differential across customer cohorts. Spending among cardholders in the top quartile outpaced other customer groups over the prior six months, and that strength was particularly notable in the fourth quarter. The firm interpreted those patterns as evidence that Walmart’s expanded convenience and e-commerce offerings are drawing higher-income consumers to the chain.

Truist pointed to the customer mix shift and sales momentum as contributors to Walmart’s recent stock performance, which the firm noted has produced a 28.22% price return over the past six months.

Looking forward, Truist said it expects Walmart to continue signaling persistent consumer trends through 2026 and to guide toward sales growth in the range of roughly 3% to 4%. The firm maintained its Buy view based on Walmart’s continued market share gains and its characterization of the company as a meaningful real asset play within retail.

Data from InvestingPro was cited to underline Walmart’s standing in the Consumer Staples Distribution & Retail category; that data also shows Walmart trading at a relatively high price-to-earnings ratio of 45.05. Truist added that its own financial model and valuation for Walmart are under review.

The note arrives on the eve of Walmart’s scheduled fourth-quarter earnings release, noted for investors as occurring tomorrow, February 19th. According to InvestingPro, analyst consensus remains strongly bullish, with multiple analysts recently raising earnings estimates for the upcoming period.

Other broker commentary has echoed bullish sentiment. Piper Sandler reiterated an Overweight rating and forecasted comparable sales growth of 5.0%, above the Street’s 4.3% estimate. UBS preserved a Buy rating with a $135 price target. RBC Capital lifted its price target to $140 while keeping an Outperform rating and cited an estimated earnings per share of $3.33 for 2027. BTIG also raised its price target to $140 and projected fourth-quarter earnings per share of $0.72. These revisions and reiterated ratings reflect a broadly positive stance among sell-side analysts heading into the print.

Within the broader retail coverage landscape, Barclays maintained an Equalweight rating for Kroger, while noting the appointment of Greg Foran as CEO as a positive development for that company.


Context and implications

Truist’s conclusion rests on transactional card data that signals stronger relative spending by higher-income customers at Walmart and an in-line comparable sales result for the fourth quarter. The firm’s outlook assumes continued market share gains and a return profile tied in part to Walmart’s sizeable physical footprint and investment characteristics.

What to watch next

Investors will be watching Walmart’s earnings release tomorrow, February 19th, for confirmation of comparable sales trends and management’s sales guidance through 2026. Separately, Truist’s ongoing review of its financial model and valuation could lead to adjustments in its published estimates or target should the firm rewrite its assumptions.

Risks

  • Truist is currently reviewing its financial model and valuation for Walmart, which could result in future changes to its published estimates or price target - this affects investor expectations in the equities market.
  • Walmart’s near-term performance will hinge on confirmation from the company’s fourth-quarter earnings report (scheduled for February 19th); unclear or weaker-than-expected results could alter analyst sentiment and retail sector valuations.
  • Walmart is trading at a high P/E ratio of 45.05, which implies elevated expectations; valuation sensitivity could increase market risk for consumer staples and retail investors if earnings momentum slows.

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