Analysts have lowered Walmart's fair value estimate from $138.37 to $128.43, feeding into a reduced price target after softer U.S. comparable sales and mixed second-quarter results. The revision reflects modeled revenue growth of 4.45% versus 4.70% previously, a net profit margin of 3.53% versus 3.52%, a future P/E assumption of 42.21x versus 45.82x, and a discount rate of 7.24% versus 7.11%. Walmart reported Q2 FY27 net sales growth of 5.9% and operating income growth of 28.8%, supported by a $2.9 billion tariff refund, while global e-commerce sales grew 23% to 24%. Despite results exceeding estimates and higher full-year guidance for 4% to 5% net sales growth and 7% to 8.5% adjusted operating income growth, shares fell in premarket trading as investors focused on slower U.S. comparable sales of 2.6% and pressure in pharmacy and health and wellness. Bullish analysts cite price reinvestment, faster growth in e-commerce, membership and advertising, and an 11.2% increase in membership and other income, while bearish analysts flag slowing U.S. comp growth, pharmacy headwinds, elevated valuation, and weaker traffic.
Walmart Inc.Fair value estimate cut and reduced price target after softer U.S. comps and mixed Q2 results.
