economy
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.