RBC Capital lowered its price target on Walmart Inc. (NYSE:WMT) to $137 from $140. The firm maintains an Outperform rating on the stock.
The revision comes due to higher fuel costs, which impacted flow-through more than expected. Walmart's decision not to pass costs to consumers should boost market share, RBC said.
For Q2 fiscal 2027, RBC raised its constant currency net sales growth estimate to 5.3% from 5.0%, but lowered adjusted EPS to $0.75 from $0.76. Guidance ranges from $0.72 to $0.74.
For fiscal 2027 and 2028, net sales growth is now seen at 5.3% and 5.0%, respectively. Adjusted EPS estimates were cut to $2.92 and $3.27 from $2.96 and $3.32.
The stock has fallen 7.7% in the past week, though it still shows a 27.5% gain over the past year. The new target is based on roughly 42 times fiscal 2028 adjusted EPS.
