Citi Increases Walmart Price Target, Indicating Retail Giant is “Well-Positioned Near-Term”

Walmart is “well-positioned” for future growth despite an uncertain consumer outlook, according to analysts from Citi. In a recent report, they raised their target price for the retail giant to $98 from $75, citing Walmart’s ability to gain market share, particularly in its grocery business, along with its extensive store network and strong ecommerce performance.

Analysts noted that Walmart has successfully increased its share in the food and grocery sector in recent years, driven by its reputation for value during inflationary times and its convenient service offerings. They emphasized that Walmart, headquartered in Arkansas, is just beginning to develop several high-margin growth initiatives, including marketplace, fulfillment services, data services, and advertising.

These emerging businesses, the analysts argued, create a beneficial cycle that makes it difficult for many competitors to keep pace over the long term. This assessment follows Walmart’s second-quarter earnings report, which exceeded analysts’ expectations, largely due to growth in its ecommerce division and enhanced profit margins.

Walmart reported adjusted earnings per share of $0.67, surpassing the estimated $0.64. The company’s revenue for the quarter reached $169.3 billion, outpacing the consensus estimate of $168.52 billion and representing a 4.8% increase from the previous year. CEO Doug McMillon commented that growth is occurring across all areas of the business, including store and club sales, with ecommerce growing rapidly as new services like pickup and improved delivery options are implemented. Additionally, newer ventures such as marketplace, advertising, and membership are diversifying profits and reinforcing the business model’s resilience.

For the upcoming third quarter, Walmart forecasts earnings per share between $0.51 and $0.52, which is slightly below the consensus prediction of $0.54. However, the company has raised its full-year fiscal 2025 outlook, projecting earnings per share in the range of $2.35 to $2.43, an increase from its previous guidance of $2.23 to $2.37.

Shares in Walmart have risen more than 50% this year and saw a slight increase in premarket trading on Friday.