Walmart shares face downgraded price targets from RBC and Bank of America following softer-than-expected Q1 guidance and earnings.
RBC Capital Markets lowered its price target on Walmart (NASDAQ:WMT) to $137 from $140, maintaining an Outperform rating after the retailer’s Q1 results matched earnings but fell short on guidance. The firm noted Walmart traded at roughly 40 times expected earnings ahead of the report, with higher fuel costs weighing on margins during the quarter.
Bank of America also reduced its price target to $144 from $150, keeping a Buy rating. The firm cited a challenging consumer environment for its valuation adjustment but expects Walmart to gain market share as value-focused shopping persists. BofA suggested a potential return to a beat-and-raise cycle if freight conditions stabilize.
Walmart operates retail and e-commerce platforms globally, positioning itself as a technology-driven omnichannel retailer. The stock remains a top pick for dividend-focused portfolios despite recent downgrades.