{"id":2362,"date":"2026-08-24T00:25:26","date_gmt":"2026-08-24T00:25:26","guid":{"rendered":"https:\/\/yourfinancerules.com\/index.php\/2026\/08\/24\/walmart-stock-price-target-reset-by-jpmorgan-after-earnings\/"},"modified":"2026-08-24T00:25:26","modified_gmt":"2026-08-24T00:25:26","slug":"walmart-stock-price-target-reset-by-jpmorgan-after-earnings","status":"publish","type":"post","link":"https:\/\/yourfinancerules.com\/index.php\/2026\/08\/24\/walmart-stock-price-target-reset-by-jpmorgan-after-earnings\/","title":{"rendered":"Walmart stock price target reset by JPMorgan after earnings"},"content":{"rendered":"<p><strong>Walmart<\/strong> just handed Wall Street a mixed bag.&#xA0;<\/p>\n<p>Despite rising revenue and profits, shares of the big-box retailer fell more than 9%, following its recent quarterly results.&#xA0;<\/p>\n<p>Soon after, <strong>JPMorgan<\/strong> adjusted its stock price target for Walmart (WMT).&#xA0;<\/p>\n<h2><strong>Walmart stock price target drops to $125<\/strong><\/h2>\n<p>At the time of writing, WMT stock trades around $104. Valued at a market cap of $825 billion, Walmart has returned more than 400% to shareholders over the past decade, after adjusting for dividend reinvestments.&#xA0;<\/p>\n<p>The stock&#x2019;s decade-long outperformance has meant it trades at 35x forward earnings, which is steep for a company <a href=\"https:\/\/app.tikr.com\/stock\/estimates?cid=313055&amp;tid=2663222&amp;tab=est&amp;ref=49x9sy\">projected to grow earnings<\/a> at a compounded annual rate of 8.7% over the next five years. <\/p>\n<p align=\"center\"><strong><a href=\"https:\/\/www.thestreet.com\/investing\/stocks\/wmt-walmart-using-tariff-refund-to-keep-shoppers-prices-low\">Related: Walmart shoppers must consider one major shift coming to prices<\/a><\/strong><\/p>\n<p>By comparison, <a href=\"https:\/\/app.tikr.com\/stock\/estimates?cid=313055&amp;tid=2663222&amp;tab=est&amp;ref=49x9sy\">Walmart&#x2019;s<\/a> 10-year average P\/E multiple is much lower at 25x.&#xA0;<\/p>\n<p>According to <a href=\"https:\/\/www.investing.com\/news\/analyst-ratings\/jpmorgan-cuts-walmart-stock-price-target-on-comp-performance-93CH-4871841\">Investing.com<\/a>:<\/p>\n<ul>\n<li>JPMorgan lowered its price target on Walmart to $125 from $137, while maintaining its &#x201C;Overweight&#x201D; rating on the blue-chip stock.<\/li>\n<li>JPMorgan had already cut its same-store sales estimate for Walmart three weeks before earnings. When the actual number landed, it came in below the lowered projection.&#xA0;<\/li>\n<li>The analyst described the setup heading into results as a &#x201C;hairball,&#x201D; a messy tangle of moving pieces that made the stock hard to call.&#xA0;<\/li>\n<\/ul>\n<h2><strong>Why Walmart stock is under pressure<\/strong><\/h2>\n<p>Walmart&#x2019;s health and wellness business has weighed on revenue and margins in fiscal Q2 of 2027 (ended in July).&#xA0;<\/p>\n<p>Walmart&#x2019;s chief financial officer, <a href=\"https:\/\/stock.walmart.com\/_assets\/_921ff28c537145729fbc2553b7f43fac\/walmart\/db\/938\/9996\/transcript_management_call\/Earnings+Transcript+%28FY27+Q2%29.pdf\">John David Rainey<\/a>, told analysts on the company&#x2019;s second-quarter fiscal 2027 earnings call that new <a href=\"https:\/\/libertysoftware.com\/what-pharmacies-need-to-know-about-maximum-fair-price\/\">maximum fair pricing regulation<\/a> impacted total comparable sales by 125 basis points in the quarter, worse than the 100 basis point hit the company had planned for entering the year.<\/p>\n<p><a href=\"https:\/\/stock.walmart.com\/_assets\/_921ff28c537145729fbc2553b7f43fac\/walmart\/db\/938\/9996\/transcript_management_call\/Earnings+Transcript+%28FY27+Q2%29.pdf\">Walmart<\/a> U.S. comparable sales came in at 2.6% for the quarter. Strip out health and wellness, and that number looks a lot healthier, closer to the 3% to 4% range the company has posted consistently over the past two and a half years.&#xA0;<\/p>\n<p>CEO <a href=\"https:\/\/stock.walmart.com\/_assets\/_921ff28c537145729fbc2553b7f43fac\/walmart\/db\/938\/9996\/transcript_management_call\/Earnings+Transcript+%28FY27+Q2%29.pdf\">John Furner<\/a> called it a good quarter overall, with sales growth at the top end of guidance and adjusted operating income up 17.4% in constant currency.&#xA0;<\/p>\n<p>Furner said the pharmacy headwind masked otherwise strong performance across grocery, general merchandise and e-commerce.<\/p>\n<figure><figcaption>John Furner, CEO, Walmart, expects new revenue streams to drive growth<\/p>\n<p><a href=\"https:\/\/www.gettyimages.in\/detail\/news-photo\/john-furner-ceo-walmart-us-speaks-onstage-during-the-news-photo\/2241267861?adppopup=true\">Paul Morigi\/Getty Images<\/a><\/p>\n<\/figcaption><\/figure>\n<h2><strong>Walmart C-suite looks beyond pharmacy drag<\/strong><\/h2>\n<p>JPMorgan&#x2019;s keeping an outperform rating while cutting its short term price target rests on a simple idea. <a href=\"https:\/\/stock.walmart.com\/_assets\/_921ff28c537145729fbc2553b7f43fac\/walmart\/db\/938\/9996\/transcript_management_call\/Earnings+Transcript+%28FY27+Q2%29.pdf\">Walmart<\/a> has more ways to make money than it used to, and those newer businesses are growing fast enough to offset the pharmacy drag.<\/p>\n<ul>\n<li>Global advertising revenue jumped 38% in the quarter&#xA0;<\/li>\n<li>Marketplace sales in the U.S. climbed 52%.&#xA0;<\/li>\n<li>Membership income grew nearly 17% worldwide, and&#xA0;<\/li>\n<li>Walmart Plus posted its best first-half membership growth in the program&#x2019;s history.<\/li>\n<\/ul>\n<p>Rainey told analysts that almost half of Walmart&#x2019;s profit growth in the quarter came from areas like membership, advertising and marketplace, not the core retail business.&#xA0;<\/p>\n<p>He also said e-commerce advertising is now growing faster than e-commerce sales overall, pushing incremental margins higher.&#xA0;<\/p>\n<p><a href=\"https:\/\/stock.walmart.com\/_assets\/_921ff28c537145729fbc2553b7f43fac\/walmart\/db\/938\/9996\/transcript_management_call\/Earnings+Transcript+%28FY27+Q2%29.pdf\">Furner<\/a> stated:<\/p>\n<p>&#x201C;The mix of eCommerce for Walmart International is now 30%, with strong growth again this quarter in China, India and Canada. Growth in Q2 was 19%. Sam&#x2019;s Club U.S. grew eCommerce 26%, with delivery from Club up triple digits following the launch of our 1-hour delivery back in April.&#x201D;<\/p>\n<p>Moreover, Furner pointed to price investments as a driver of future growth.&#xA0;<\/p>\n<p><a href=\"https:\/\/stock.walmart.com\/_assets\/_921ff28c537145729fbc2553b7f43fac\/walmart\/db\/938\/9996\/transcript_management_call\/Earnings+Transcript+%28FY27+Q2%29.pdf\">Walmart<\/a> ran more than 11,000 rollbacks during the quarter, up from 7,200 at the end of the first quarter.&#xA0;<\/p>\n<h4><strong>More Walmart:<\/strong><\/h4>\n<ul>\n<li><a href=\"https:\/\/www.thestreet.com\/investing\/stocks\/bank-of-america-walmart-wmt-stock-advertising-earnings\"><strong>BofA points to crucial Walmart numbers most investors ignore<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/www.thestreet.com\/retail\/walmart-costco-and-cvs-have-a-new-way-to-bring-you-back\"><strong>Walmart, Costco, and CVS have a new way to bring you back<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/www.thestreet.com\/retail\/kroger-makes-a-pricing-move-costco-and-walmart-will-love\"><strong>Kroger makes a pricing move Costco and Walmart will love<\/strong><\/a><\/li>\n<\/ul>\n<p>He said those cuts tend to boost unit volume first, with market share gains following over the next few months.<\/p>\n<p>The investment bank noted that the bearish case on Walmart assumes there&#x2019;s no lagging benefit from these price cuts, meaning bears expect the rollbacks to cost Walmart money without ever paying off in higher traffic or share gains.&#xA0;<\/p>\n<p>Furner&#x2019;s comments suggest management sees it differently, and the company&#x2019;s food-category share numbers this quarter, which Furner called among the strongest in some time, appear to support that.<\/p>\n<h2><strong>What next for Walmart stock price <\/strong><\/h2>\n<p>JPMorgan isn&#x2019;t alone in trimming its number. The <a href=\"http:\/\/investing.com\">investing.com<\/a> report states:<\/p>\n<ul>\n<li>BMO Capital cut its target to $126, pointing to the same comparable sales slowdown and health and wellness weakness.&#xA0;<\/li>\n<li>TD Cowen lowered its WMT stock price target to $125, also citing the 2.6% comp figure.&#xA0;<\/li>\n<li>Bernstein held its Outperform rating and pointed to Walmart&#x2019;s strong margins as a reason for confidence.<\/li>\n<\/ul>\n<p>Out of the 32 analysts covering <a href=\"https:\/\/www.thestreet.com\/quote\/WMT\">Walmart stock<\/a>, 29 recommend &#x201C;Buy&#x201D;, and three recommend &#x201C;Hold&#x201D;. The average <a href=\"https:\/\/www.thestreet.com\/quote\/WMT\">WMT stock price target<\/a> is $130, indicating an upside potential of 25% from current levels.&#xA0;<\/p>\n<p>Notably, JPMorgan&#x2019;s takeaway is that the selloff has run its course.&#xA0;<\/p>\n<p>The firm expects Walmart&#x2019;s trends to improve as advertising, marketplace and membership keep scaling, giving the stock a path forward even with a lower price target attached.<\/p>\n<p align=\"center\"><strong><a href=\"https:\/\/www.thestreet.com\/retail\/walmart-plus-perks-compete-with-amazon-prime\">Related: Walmart makes key move to compete with Amazon<\/a><\/strong><\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Walmart just handed Wall Street a mixed bag.&#xA0; Despite rising revenue and profits, shares of the big-box retailer fell more than 9%, following its recent quarterly results.&#xA0; Soon after, JPMorgan adjusted its stock price target for Walmart (WMT).&#xA0; Walmart stock price target drops to $125 At the time of writing, WMT stock trades around $104. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2363,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-2362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"_links":{"self":[{"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/posts\/2362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/comments?post=2362"}],"version-history":[{"count":0,"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/posts\/2362\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/media\/2363"}],"wp:attachment":[{"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/media?parent=2362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/categories?post=2362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourfinancerules.com\/index.php\/wp-json\/wp\/v2\/tags?post=2362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}