JPMorgan lowers price target for Walmart following Q2 earnings
Following its recent quarterly results, JPMorgan lowered its stock price target for Walmart (WMT) from $137 to $125 while maintaining an 'Overweight' rating. Despite a rise in revenue and profits, Walmart's shares fell over 9% due to concerns around the health and wellness segment impacting sales growth. The company reported U.S. comparable sales of 2.6%, which was below expectations after factoring in pharmacy-related headwinds. Walmart CEO John Furner described the quarter as strong overall, with adjusted operating income up by nearly 18%. New revenue streams such as advertising and marketplace services are growing rapidly and offsetting some of the drag from the health segment. Global advertising revenue rose 38%, while U.S. Marketplace sales climbed 52% in Q2. Walmart's e-commerce growth is also accelerating, with online sales now accounting for 30% globally. The company has expanded delivery services and launched initiatives like one-hour delivery at Sam’s Club to boost customer engagement.
Topics: Earnings Results JPMorgan Stock Price Target Walmart