Walmart (WMT) is expected to benefit from a strong holiday season, top-line momentum across the enterprise, and possible weather benefits in Q4, Oppenheimer said in a note Monday.

"We are lifting our Q4 EPS estimate toward the high end of management's guidance range," the report said. The results are due on Feb. 19.

Oppenheimer analysts now expect Q4 EPS of $0.72, up from $0.70, and against management guidance of $0.67 to $0.72 and market consensus of $0.72.

The report said updated forecast reflects at least a 4% comparable sales growth in the US and continued momentum of the company's Sam's Club and international business segments.

The note also said Walmart could introduce 2026 targets below the Street and more in line with its longer-term algorithm.

"We still would be positioned for any potential dip vs. playing for a positive catalyst," the report said. Oppenheimer raised its price target to $140 from $125 while keeping its outperform rating.

Price: 130.43, Change: -0.75, Percent Change: -0.57