Walmart (WMT) remains among the "best positioned" companies in RBC Capital Markets' coverage to manage the impact of tariffs, the firm said in a note.

Sales trends improved through the quarter and into May, implying that fiscal Q2 is tracking ahead of guidance, RBC said in a research note Thursday. Management is being appropriately cautious in its Q2 outlook, reflecting uncertainty around how consumers will respond to tariff-driven inflation.

Walmart has yet to meaningfully raise prices, unlike many peers. That has widened price gaps and may drive near-term share gains. The company's commitment to keeping grocery prices low-while using higher-margin businesses such as advertising and membership to absorb cost pressure-should help reinforce its relative positioning, the firm added.

On the downside, Walmart US general merchandise comps declined slightly year over year, led by softness in electronics, home goods, and sporting goods. Additionally, higher-than-expected casualty claims totaling around $200 million will likely weigh on operating income for the remainder of the year, RBC noted.

The brokerage trimmed its fiscal Q2 constant currency net sales growth estimate to 4.9% from 5.1% and raised its adjusted EPS estimate to $0.80 from $0.72. Full-year and fiscal 2026 estimates were largely unchanged, according to the research note.

RBC maintained its price target on the stock at $102, with a outperform rating.

Price: 98.01, Change: +1.66, Percent Change: +1.72