All all-time high market valuation has not dissuaded Bank of America (BoA) from maintaining a ‘buy’ rating on Walmart Inc (NYSE:WMT, ETR:WMT) ahead of the retail giant’s third-quarter results.
BoA expects adjusted earnings per share (EPS) of $0.52 and a 3.5% increase in comparable US sales for the quarter.
Analysts at the bank highlighted Walmart’s strong performance in grocery sales, robust omni-channel execution, and gains across income groups as factors likely to drive further growth.
Walmart’s digital initiatives, including store remodels, SKU expansion, and express delivery, are reinforcing its market position, particularly in lower-income segments where competitive pressures have been cited.
Additionally, Walmart+ membership saw double-digit growth in the second quarter, a trend that BoA expects to continue.
“We reaffirm our Buy on WMT as broad-based share gains continue and long-term profitability improves supported by growth of high-margin digital advertising and 3P Marketplace seller fees and improvements in core ecommerce losses,” BoA stated.
BoA has a share price target of $95.00 against the current record-high share price of $85.12.
Walmart’s third-quarter results are due on November 19.