Walmart Stock ( NYSE:WMT )
Oppenheimer is preparing to take a position on Walmart ( NYSE:WMT ) in advance of the retail giant’s earnings report for the fourth quarter , which is scheduled to be released on February 21.
Analyst Rupesj Parikh and his colleagues anticipate Walmart (WMT) will post another solid top-line performance, with the food division more than balancing challenges in key discretionary categories and margin concerns.
The company anticipates that Walmart will post a comparable sales gain of 6% in the United States. Still, it also anticipates that margin headwinds will slightly constrain EPS flow-through associated with the improved comp. Importantly, it is believed that conservative advice will result in some share price volatility and a possible entry opportunity for new investors.
“We anticipate a below-algorithm guidance in light of the macroeconomic unpredictability and company-specific headwinds, such as the recent rise in the minimum wage and an expected LIFO charge of fewer than one billion dollars. If there was a flaw in the print, we would be in the perfect position to exploit it.”
Oppenheimer has set a 12- to an 18-month price target of $160 on Walmart stock with an Outperform rating based on a 24x P/E multiple applied to the estimated earnings per share (EPS) for FY24 of $6.80. In addition, the PT is to an EV/EBITDA multiple of around 12 times.
The company has a positive outlook on the long-term potential of Walmart, and they believe that Walmart stock is still in a good position to outperform the market. This outlook is supported by continued groce...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube