Walmart (WMT) is expected to deliver solid Q3 results, supported by continued market share gains across both grocery and general merchandise, BofA Securities said in a note Wednesday.
The analysts are forecasting Q3 earnings of $0.63 per share, including 2.8% US comparable sales growth excluding fuel, and expect the company to raise its full-year sales and EPS guidance to the upper end of its previous range.
Following the recent sector rotation, investors will want to see faster US comparable sales growth excluding health and wellness, the analysts said.
They will also look for greater confidence that Walmart's marketplace and advertising businesses can drive stronger EPS growth next year, the analysts added.
BofA raised its price target on Walmart to $139 from $126 and kept its buy rating.
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