CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We trim our 12-month target by $3 to $143, based on ~40x our FY 28 (Jan.) EPS estimate of $3.58 (down from $3.64, but still well above the current $3.29 consensus). We lower our FY 27 EPS to $3.04 from $3.14, still ahead of the current $2.92 consensus. We view WMT's Apr-Q results as fundamentally strong, but margin pressure from higher fuel costs, which reduced operating income growth by 250 bps in the quarter, coupled with a lack of a guidance raise, is fueling the pullback in shares. In our view, the reaction is reasonable given the stock's elevated valuation (~45x NTM EPS). That said, we would be buyers on weakness, as we believe WMT's core business is accelerating, not slowing. Recent exogenous and one-off headwinds, including tariffs, unexpected insurance costs, and higher fuel expenses, have obscured underlying execution and limited the company's ability to consistently deliver 10%+ operating income growth. Despite fuel headwinds, earnings growth should accelerate in the Jul-Q and remainder of the year.