Walmart's stock fell 9% on Thursday, its largest single-day decline since May 2022, following disappointing guidance and a significant miss on same-store sales. JPMorgan analyst Christopher Horvers noted that this decline presents a buying opportunity, as the firm believes the worst is over for Walmart.
Although JPMorgan reduced its price target from $137 to $125, this still indicates a potential upside of nearly 21% from the stock's closing price. Horvers expressed confidence that the current bearish sentiment is overly pessimistic, suggesting that the market is not fully accounting for Walmart's potential to benefit from alternative profit streams and advancements in AI automation.
He emphasized that the long-term growth story remains intact, particularly through marketplace expansion. The consensus among analysts is largely positive, with 40 out of 44 recommending a buy or strong buy on Walmart shares, indicating strong confidence in the retailer's recovery and growth prospects despite recent challenges