10:50 AM EDT, 05/13/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target $3 to $68, 28.1x our FY 25 (Jan.) EPS of $2.42 (up from $2.41; FY 26 up a penny to $2.61). WMT will report FQ1 results on May 16. We expect adj-EPS of $0.53 (+9% Y/Y) vs. the $0.52 consensus and revenue of $159.2B (+4.5% Y/Y) vs. the $159.4B consensus. We see U.S. comp sales +3.8% (+4.3% transactions; -0.5% average ticket) vs. the +3.7% consensus, a deceleration from FQ4 (+4.3%), primarily due to moderating inflation in grocery/consumables. General merchandise (GM) sales will likely remain soft due to consumer spending headwinds and deflation in some GM categories, but we think WMT will gain share from consumers seeking value, as well as WMT's investments in its stores (e.g., store remodels) and its e-commerce business. Strong growth in advertising and fulfilment services should aid gross margins, along with lower transportation costs and stronger inventory management (results in less markdowns). Yet, higher wages and store remodel costs could keep operating margins flat at 4.1%.