Walmart Shares Likely Facing Short-Term Breather, Oppenheimer Says

MT Newswires Live08-25 23:17

Walmart's (WMT) recent share pullback reflects a valuation reset and softer US comparable-sales trends, and the stock's short-term breather is likely to continue, Oppenheimer said Tuesday in a report.

US comparable sales slowed both including and excluding Health & Wellness, while General Merchandise trends decelerated from mid-single-digit growth in Q1 to low-single digits in Q2, Oppenheimer said. Shares now trade at about 34 times next-12-month consensus earnings estimates, down from a peak of 44 times, the report said.

Oppenheimer sees a bottom for the stock in the low $90s to low $100s and remains focused on upside potential in the US General Merchandise category, which it views as a swing factor.

Walmart's management team under CEO John Furner "continues to execute quite well," the report said.

Oppenheimer has a perform rating on Walmart stock and said its longer-term upbeat views on the company are unchanged.

Price: 105.12, Change: -1.37, Percent Change: -1.29

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment