Walmart (WMT) PT Raised to $100 at Guggenheim

Guggenheim analyst Robert Drbul raised the price target on Walmart (NYSE: WMT) to $100.00 (from $90.00) while maintaining a Buy rating.

The analyst commented: "This morning, Walmart reported 3Q25 results that were largely ahead of our expectations. WMT reported adjusted EPS of $0.58, $0.05 ahead of our estimate. Consolidated revenues increased 5.5% with adjusted operating income, once again, outpacing sales growth, at 8.2%. Walmart U.S. comp sales were up 5.3%, above our 4.0% estimate, with share gains in both Grocery and General Merchandise ($100k+ households made up 75% of share gains). Global eCommerce sales were particularly strong, up 27% (up 22% in the U.S), fueled by store-fulfilled pickup & delivery and marketplace. The global advertising business grew 28% (with 26% growth in Walmart Connect), while membership income growth was up 22%. Advertising and membership fees contributed more than a half of operating income improvement (almost 1/3 of the overall operating income for the business). 3Q25 gross margin was up ~20 bps to 24.2%, in line with our estimate, reflecting strength at Walmart U.S. (lean inventories and lower markdowns), partially offset by the timing of Flipkart's BBD sales event. Given the results, we increase our FY25 adjusted EPS estimate to $2.47 (from $2.45), and maintain our FY26 EPS estimate of $2.70. We continue to believe Walmart remains well positioned in an uncertain macro environment with its price and value proposition and with increased convenience and assortment. We continue to be impressed by Walmart's ongoing progress in its reshaping its business model, profit composition and business mix as the company scales growth drivers as advertising, membership, marketplace, fulfillment and data analytics. We reiterate our Buy rating and are increasing our PT to $100 from $90."

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