Wall Street's confidence in Walmart leaves little room for upside, Oppenheimer says
Oppenheimer downgraded Walmart and removed its price target, saying it will be hard to meet Wall Street's near-term profit estimates.
TL;DR
- Oppenheimer downgraded Walmart from outperform to perform, removing its $140 price target.
- Reasons for the downgrade include pharmacy headwinds in Walmart U.S. due to the Inflation Reduction Act, a peakish valuation, and optimistic street forecasts.
- Oppenheimer expects shares might move lower ahead of the fiscal second-quarter earnings report.
- The stock is trading at 37 times forward earnings, significantly higher than its historical average of 23 times.
- Oppenheimer remains long-term bullish on Walmart's prospects and management, led by President and CEO John Furner.