Bank of America lowers Walmart’s price target amid a tougher consumer backdrop but expects market share gains.
Bank of America reduced its price target for Walmart (NASDAQ:WMT) to $144 from $150 while maintaining a Buy rating. The firm cited a more challenging consumer environment, which led to a lower valuation multiple post-earnings.
Walmart is seen benefiting from price-conscious consumers, potentially driving a return to a beat-and-raise cycle if freight conditions stabilize. Piper Sandler recently raised its target to $137 from $130, citing resilient spending despite higher gas prices.
Middle- and upper-income consumers appear to be saving tax refunds rather than boosting retail spending, while home improvement trends remain sluggish.