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JPMorgan cuts Walmart price target after earnings-led stock slide
Walmart US comparable sales rose 2.6% in fiscal Q2 2027, but maximum fair pricing regulation weighed on total comparable sales by 125 basis points.
Walmart shares fell more than 9% after its recent quarterly results, with the stock trading around $104 as of the time of the report, according to Yahoo Finance.
JPMorgan reset its Walmart price target to $125 from $137 while keeping an Overweight rating, after the retailer reported same-store sales that came in below a previously reduced estimate for the period.
The investment bank had already cut its same-store sales forecast three weeks before earnings, and it described the pre-results setup as a complex tangle of moving parts. Walmart’s fiscal Q2 2027 ended in July, and the company said its health and wellness segment weighed on revenue and margins.
Walmart attributed part of the slowdown to new maximum fair pricing regulation, which CFO John David Rainey said reduced total comparable sales by 125 basis points in the quarter, compared with a 100 basis point hit the company had planned for entering the year. CEO John Furner said adjusted operating income increased 17.4% in constant currency and noted pharmacy headwinds masked strength across grocery, general merchandise, and e-commerce, while Walmart Plus posted its best first-half membership growth in program history.