On Wednesday, KeyBanc Capital Markets maintained its positive stance on Walmart Inc. (NYSE:WMT), citing expectations of market share gains. Analyst Bradley Thomas at KeyBanc raised the price target on Walmart shares to $100.00, up from the previous target of $96.00, while keeping an Overweight rating on the stock. According to InvestingPro data, Walmart's stock has delivered an impressive 81.67% return year-to-date, with shares currently trading near their 52-week high of $96.18.
Thomas highlighted the current volatility within the Hardlines/Broadlines sector, noting that near-term trends are expected to remain uneven, with a clear divide between market share winners and losers.
Despite the challenges, including a shorter holiday season with five fewer selling days and softness in big-ticket discretionary items, the analyst anticipates Walmart will achieve meaningful share gains. The retail giant, with annual revenue of $673.82 billion, has demonstrated its market resilience by maintaining dividend payments for 52 consecutive years, as highlighted in InvestingPro's analysis.
Walmart's stock valuation metrics were also discussed, with shares currently trading at multiples of 38.1 times and 34.5 times KeyBanc's earnings per share (EPS) estimates for 2024 and 2025, respectively. These figures are notably higher than Walmart's five-year average price-to-earnings (P/E) ratio of 24x, which has ranged from 10x to 35x.
Moreover, on an enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) basis, Walmart's shares are trading at 18.8x for 2024 and 17.4x for 2025, compared to a five-year average of 11x, with a historical range of 8x to 14x.
Additionally, the enterprise value to sales (EV/sales) multiple for 2025 stands at 1.1x, against a five-year average of 0.7x. The new 12-month price target of $100 is based on approximately 37 times KeyBanc's 2025 EPS estimate for Walmart.
The Overweight rating by KeyBanc suggests that the firm believes Walmart's stock will outperform the average return of the stocks the firm covers over the next 12 to 18 months. This positive outlook is anchored on the company's potential to capitalize on market share opportunities during the upcoming holiday season and beyond.
Based on InvestingPro's comprehensive analysis, which includes over 30 additional financial metrics and insights available to subscribers, Walmart's current valuation appears elevated compared to its Fair Value estimate. Investors seeking deeper insights can access the full Pro Research Report, available exclusively to InvestingPro subscribers, which provides detailed analysis of Walmart's financial health and growth prospects.
In other recent news, Walmart Inc. has been a focus of several analyst firms following its robust financial performance and strategic acquisitions. RBC (TSX:RY) Capital Markets has revised Walmart's price target from $96.00 to $105.00, maintaining an Outperform rating, based on the retailer's continued e-commerce strength and expected profit contributions from advertising and membership income. This projection aligns with Walmart's impressive 92% gain over the past year and a robust market capitalization of $768.8 billion.
Piper Sandler has also retained an Overweight rating on Walmart, influenced by the company's strategic acquisition of consumer electronics company VIZIO for $2.3 billion. This acquisition is expected to enhance Walmart's advertising business, Walmart Connect, leveraging VIZIO's advanced connected TV advertising capabilities.
In addition to these developments, Walmart and Amazon.com (NASDAQ:AMZN) have reported record-breaking holiday sales, surpassing competitors like Target (NYSE:TGT) and Best Buy (NYSE:BBY). Walmart's strong third-quarter performance was also notable, with consolidated revenues increasing by 5.5% and global eCommerce sales rising by 27%.
Financial firms such as Barclays (LON:BARC), KeyBanc Capital Markets, Baird, Guggenheim, and RBC Capital Markets have maintained positive ratings on Walmart, adjusting their price targets accordingly. Kathryn McLay, Walmart's Executive Vice President, President, and CEO of Walmart International, has established a prearranged stock trading plan, selling 4,000 shares of Walmart common stock monthly from March 2025 through December 2025.
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