Investment bank Oppenheimer downgraded Walmart from outperform to perform, removing its prior $140 price target that implied 26% upside. Analysts cite three reasons: headwinds in U.S. pharmacy related to the Inflation Reduction Act, peak valuation susceptible to downward re-rating, and Wall Street forecasts already exceeding long-term guidance. The stock currently trades at 37 times forward earnings versus a historical average of around 23 times. Despite remaining long-term bullish on Walmart, Oppenheimer expects a negative stock reaction when fiscal second-quarter results are reported on August 20.
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