Tigress Financial Lifts Walmart (WMT) Price Target After Strong Q2 Results

Walmart Inc. (NYSE:WMT) is one of the top 10 mega-cap stocks to buy according to hedge funds. On September 3, Tigress Financial maintained its Buy rating on Walmart Inc. (NYSE:WMT) while increasing its price target on the stock from $120 to $125. The increase in price target came after the retailing giant posted its Q2 Fiscal Year 2026 results on August 21. As of September 3, the stock was trading at $98.79, giving the stock a 12-month upside potential of 26.5%, based on Tigress’ new price target.

Tigress cited that the company demonstrated “robust” sales growth along with significant advancements in the digital and omnichannel segments and increased operating efficiency. The firm pointed out that its new price target represents a total return, which includes dividends, of close to 30%.

Walmart’s revenue in Q2 grew by a steady 4.76% to $177.4 billion. The growth was driven by the company’s U.S. comparable sales, which rose 4.6% year-over-year, which, in turn, was fueled by growth in the grocery and health & wellness segments.

To Tigress’s point of increased operating efficiency, the company’s net margin in Q2 expanded to a solid 3.96%, which is much higher than the average discount retailer in the US, which is typically slightly below 3%.

The management increased its full-year outlook for net sales to 3.75%-4.75% and adjusted EPS to $2.52-$2.62 per share, compared to $2.51 it reported for Fiscal Year 2025. However, the stock’s valuation is on a frothier side, with the forward P/E currently standing at 36.67x.

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Disclosure: None.