WMT Stock Gets A Price Target Boost From BofA Ahead Of Q3 Earnings – Analyst Sees More Market Share Gains

• The firm said stronger Walmart U.S. comparable-sales growth, excluding health and wellness, and greater confidence in its marketplace and advertising businesses are needed to support faster EPS growth next year, according to Investing.com. 
• On Tuesday, Mizuho raised its price target to $135 from $125, maintaining an ‘Outperform’ rating, and estimates Walmart's global GMV at approximately $765 billion.
• Walmart is scheduled to report Q3 results on Nov. 19 before the market opens, with analysts expecting EPS of $0.64 on revenue of approximately $187.22 billion, according to Fiscal.ai estimates.

Walmart (WMT) shares drew investor attention on Wednesday after Bank of America (BofA)  raised its price target on the retailer, highlighting its market-share opportunities and growing digital marketplace business.

BofA analyst Christopher Nardone raised the firm's price target on Walmart to $139 from $126 while maintaining a ‘Buy’ rating, according to The Fly. The revised price target implies approximately 10.7% upside from Walmart's last closing price.

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WMT shares traded 1.19% lower in premarket trading at the time of writing.

Thirty-eight of 43 analysts covering the stock rate it ‘Buy’ or ‘Strong Buy’, whereas four rate the stock ‘Hold’ and one rate it ‘Sell’, according to Koyfin. Their 12-month price targets range from $81 to $ 155, with an average of $128.70.

BofA's Q3 Estimates, FY Guidance And Growth Outlook

BofA expects Walmart to continue gaining market share across grocery and general merchandise, according to The Fly. The firm also expects Walmart to update its full-year sales and earnings-per-share (EPS) guidance toward the upper end of its previous range.

According to a report published by Investing.com, BofA forecasts third-quarter EPS of $0.63 and Walmart U.S. comparable-sales growth, excluding fuel, of 2.8%.

The firm said the market needs to see an acceleration in Walmart U.S. comparable sales, excluding health and wellness, and greater confidence that its marketplace and advertising businesses can help drive faster EPS growth next year, Investing.com reported.

Mizuho Estimates Walmart's Global GMV At $765B

On Tuesday, Mizuho analyst David Bellinger raised the firm's price target on Walmart to $135 from $125 while maintaining an ‘Outperform’ rating, according to The Fly. 

Mizuho estimates Walmart's U.S. third-party marketplace generates $16 billion to $18 billion in annualized GMV, with total U.S. GMV of approximately $500 billion.

Including Sam's Club, international operations and Flipkart, Mizuho estimates Walmart's global GMV at approximately $765 billion. The firm expects Walmart to disclose GMV figures and growth rates soon, The Fly reported.

Walmart Expands Drone Delivery Network With 300 New Zipline Sites

Recently, Walmart announced a multi-year agreement with Zipline to add 300 drone delivery sites nationwide, with the potential for further expansion. The announcement builds on a program that has completed more than 2 million deliveries. Walmart has partnered with Zipline on drone deliveries since 2021.

Eligible customers can order tens of thousands of items through the Walmart app or Walmart.com, with deliveries arriving in as fast as 30 minutes where available. Walmart said its store network provides an advantage in expanding the service, noting that 90% of the U.S. population lives within 10 miles of a Walmart store.

When Is WMT Reporting Earnings

WMT is scheduled to report its third-quarter earnings on November 19, before the market opens. Analysts expect earnings of $0.64 per share on revenue of approximately $187.22 billion, according to estimates compiled by Fiscal.ai.

Meanwhile, Walmart’s own guidance calls for adjusted earnings of $0.62 to $0.64 per share, while net sales are projected to grow 3% to 3.75% year-over-year on a constant-currency basis.

WMT shares have gained over 12.6% year-to-date.

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