UBS has reaffirmed a Buy rating on Walmart (NASDAQ:WMT) and kept its price target at $135.00, according to a research note released Thursday. The target sits slightly above Walmart's most recent trade at $133.55. The stock recently eclipsed a prior 52-week high of $131.79.
Analyst perspective and market debate
UBS analyst Michael Lasser observed that debate among investors has grown more intense as Walmart's share price has climbed - a gain of 25.47% over the trailing 12 months. Market participants are weighing whether that momentum can be sustained.
The firm highlighted several topics that are central to investor discussions: Walmart's prospects under new leadership, the potential effects of agentic technology on operations and sales, the outlook for the coming year, and the company's current valuation. On valuation, InvestingPro data show Walmart trading at a price-to-earnings ratio of 46.16 - a high multiple relative to near-term growth expectations.
Confidence ahead of fourth-quarter results
Despite technical factors that may have influenced recent price movement, UBS said it expects Walmart's fourth-quarter financial report to substantiate the firm's fundamental investment thesis. UBS indicated that quarterly results should confirm Walmart's strong market position and imply the stock retains upside potential beyond its recent gains.
Street revisions and consensus expectations
Other brokerages have moved their targets higher in recent days. RBC Capital raised its price target to $140 from $126 and maintained an Outperform rating. BTIG lifted its target to $140 from $125, citing Walmart's favorable retail positioning, and Oppenheimer increased its target to $140 from $125 while pointing to expectations for a robust holiday season and top-line momentum.
These revisions coincide with the company’s pre-earnings period. BTIG’s outlook ahead of the report includes an expectation for fourth-quarter earnings per share of $0.72 and a 4.5% increase in U.S. comparable sales.
Operations and expansion
Separately, Walmart opened a Supercenter in Jacksonville’s Oakleaf community, a new store that will employ 400 people. The opening is part of a broader plan to build or convert more than 150 stores in future years, underscoring ongoing investment in physical footprint and local hiring.
Competitive and sector context
The note also referenced activity across the grocery and retail landscape. Barclays kept an Equalweight rating on Kroger and noted the appointment of Greg Foran as CEO as a positive for Kroger, saying his experience aligns with Walmart’s growth trajectory. Such commentary reflects broader movement within the retail sector as firms adjust earnings expectations and strategic priorities ahead of quarterly reports.
What remains uncertain
While UBS expressed confidence that the upcoming quarterly report will support its thesis, investor debate around valuation and growth durability continues. Market participants will watch the Q4 release and comparable sales and earnings metrics closely to judge whether recent price appreciation is justified by fundamentals.
Summary
UBS maintained a Buy rating and $135 target on Walmart, pointing to expected confirmation of the company’s market strength in its fourth-quarter results. The retailer’s shares have risen materially over the last year, prompting debate over continued momentum given a high P/E, while several other brokers raised targets to $140. Walmart continues to expand its store base and headcount as it prepares to report results.