Bank of America Says Buy Walmart (WMT) Stock After the Selloff

TLDR

• Bank of America cut its Walmart price target from $150 to $144 but kept its Buy rating
• New target implies 18.7% upside from ~$121, with the pullback seen as a buying opportunity
• Walmart raised full-year net sales guidance to the high end of its 3.5%–4.5% range
• Q1 revenue rose 7.3% to $177.8 billion; global e-commerce jumped 26%
• Stock dropped 8.1% post-earnings and opened at $118.57 on Wednesday

Bank of America is telling investors not to walk away from Walmart just yet.

Analyst Christopher Nardone reiterated a Buy rating on Walmart (WMT) while trimming the price target to $144 from $150. At the $121.34 price noted in the firm’s report, that still implies roughly 18.7% upside.

Walmart Inc., WMT

WMT opened Wednesday at $118.57. The stock is down sharply from its 12-month high of $135.15, with the post-earnings drop of 8.1% taking a big chunk of that.

The Q1 numbers were actually solid. Revenue came in at $177.75 billion, up 7.4% year over year and above the $174.84 billion consensus. EPS hit $0.66, right in line with estimates.

Global e-commerce grew 26%, and Walmart raised its full-year net sales guidance to the high end of its 3.5%–4.5% constant-currency range. Q2 guidance calls for 4%–5% growth.

So why did the stock sell off? Costs. Management flagged roughly $1 billion in incremental freight and fuel expenses, and the full-year operating profit growth guidance of 6%–8% came in below some elevated expectations. UBS also trimmed its target after the print.

Why Bank of America Still Likes It

Bank of America’s core argument is that cautious consumers are good for Walmart. When people watch their spending, they tend to drift toward value — and that’s Walmart’s lane.

The firm says Walmart is “playing offense,” with rollbacks up 20% year over year in Q1. It expects Walmart to be the last major retailer to raise prices if fuel costs push inflation higher in the second half of the year.

Bank of America also pointed to Walmart’s alternative revenue streams — advertising, marketplace fees, and membership income — as a buffer for margins. These higher-margin businesses have become a bigger part of the investment case.

The firm said fiscal 2026 gives Walmart a playbook for absorbing cost pressure. Last year, the company handled over $1 billion in headwinds from claims expense and tariffs while still growing constant-currency operating income 5.4%.

Institutional Interest Remains High

King Luther Capital Management raised its Walmart position by 8.8% in Q4, adding 113,952 units to bring its total to 1,415,423, worth around $157.7 million.

Other institutional moves were mixed. Tennessee Valley Asset Management increased its position by 466.6% in Q3. Fox Run Management and Life Cycle Investment Partners both started new positions.

Hedge funds and institutions collectively own 26.76% of WMT.

On the insider side, Director C. Douglas McMillon sold 19,416 units at $132.21 on April 23rd, and EVP John Rainey sold 20,000 at $127.79 in March. Total insider sales over the last 90 days came to 126,008 units worth about $15.9 million.

The consensus analyst rating across the Street sits at “Moderate Buy” with an average price target of $138.71. Thirty-one analysts have a Buy, two have a Strong Buy, and three are at Hold.

Walmart’s FY2027 EPS guidance is set at $2.75–$2.85, with Q2 guidance of $0.72–$0.74.

The company is also set to join the top 10 of the Russell 3000 during the June 2026 reconstitution.

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