CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target to $195 from $182, 27x our FY 25 (Jan.) EPS of $7.23 (down from $7.28; FY 26 initiated at $7.79) vs. the 24x historical average. F4Q (Jan-Q) adj-EPS of $1.80 (+5% Y/Y) smashed the $1.65 consensus. Walmart U.S. comp sales grew a solid 4.0% (+4.3% transactions; -0.3% average ticket), as consumers are shopping more frequently, but spending less per trip. Operating margins grew 30 bps Y/Y to 4.2%, as strong sales and good inventory management led to lower markdowns (Walmart U.S. inventory down 4.5% Y/Y). The outlook was a little cautious, but WMT tends to bake in some conservatism to start the year. Walmart agreed to acquire Vizio for $2.3B, which should help accelerate growth in its burgeoning global ads business (valued at $3.4B in FY 24; up 28% Y/Y). We keep a Buy as we expect WMT shares to trade at a higher multiple given all the margin expansion opportunities over the next several years (e.g., ads/membership income; productivity/automation; improved product and geographic mix).