Walmart Inc (NYSE: WMT) investors were
blindsided by a disappointing
fourth quarter this week, sending the stock tumbling by more than 11 percent. Several Wall Street analysts have jumped in to
defend Walmart following the lackluster quarter.
Here’s a rundown of what they had to say.
Voices From The Street
Bernstein analyst Brandon Fletcher said 2.6 percent same-store sales growth isn't worth paying 20 times earnings for Walmart
stock.
“Instead, investors are buying Walmart's stock for a dream. The dream that maybe Walmart can compete with Amazon online and
maybe even beat them online in certain categories,” Fletcher said in a note.
Still Bullish
Citi analyst Kate McShane said the Q4 deceleration in online sales growth was expected given that Walmart lapped its 2016
acquisition of Jet.com.
“Overall, we remain bullish on WMT’s prospects in the near and long term as its aggressive omni-channel strategy, everyday low
pricing, grocery offerings and productivity initiatives should drive upside,” McShane wrote.
Susquehanna analyst Bill Dreher said the fourth quarter was mostly short-term noise.
“We expect Walmart will demonstrate the earnings power of its omnichannel investments and view the company as the dominant
competitor to Amazon and a long-term winner in the omnichannel retail landscape,” Dreher wrote.
Take Advantage Of The Weakness
Baird analyst Peter Benedict said the quarter was certainly mixed, but the sell-off is overdone.
“While we are lowering our estimates/target, we remain encouraged by strong U.S. comp trends and believe ecommerce
re-acceleration is likely as 2018 unfolds,” Benedict wrote.
KeyBanc analyst Edward Yruma said Walmart’s fundamentals are solid and its weakness is transient.
“We would take advantage of weakness to add to positions in one of the best fundamental long-term stories in our coverage,”
Yruma wrote.
Ratings And Price Targets
Wall Street is mostly bullish on Walmart’s stock following the disappointing quarter, but some firms are more bullish than
others:
- Bernstein has a Market Perform rating and $104 price target.
- Citi has a Buy rating and $117 price target.
- Susquehanna has a Buy rating and $126 price target.
- Baird has an Outperform rating and $105 price target.
- KeyBanc has an Overweight rating and $112 price target.
Walmart's stock was down another 2.4 percent Wednesday, trading around $91.80 at time of publication.
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Latest Ratings for WMT
Date |
Firm |
Action |
From |
To |
Feb 2018 |
Barclays |
Maintains |
Overweight |
Overweight |
Feb 2018 |
MKM Partners |
Maintains |
Neutral |
Neutral |
Feb 2018 |
UBS |
Maintains |
Neutral |
Neutral |
View More Analyst Ratings for
WMT
View the Latest Analyst Ratings
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