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Walmart and Target Lauded by Analysts Before Earnings Reports

Walmart and Target analysts issued some positive comments before the retail titans issue their earnings reports next week.

Walmart  (WMT) - Get Walmart Inc. Report and Target  (TGT) - Get Target Corporation Report shares rose Friday, as analysts issued positive comments about the retail titans, impressed with their ability to withstand the coronavirus pandemic.

The commentaries come before their earnings reports, Walmart’s scheduled for Tuesday and Target’s for Wednesday.

Shares of Walmart, Bentonville, Ark., recently traded at $132.38, up 0.4%. They have climbed 11% so far this year. 

Shares of Target, Minneapolis, recently traded at $135.99, up 0.9%. They have climbed 6% year to date.

As for the analysts, Michael Baker of DA Davidson initiated coverage of Walmart with a buy rating and a $148 share-price target.

All the consumers staying at home give it a chance to thrive, helped by its "strong" grocery business and improved omnichannel structure, he wrote in a commentary cited by The Fly.

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Walmart’s “basic” product mix will help it if the economy heads south, Baker said.

Meanwhile, Wells Fargo analyst Edward Kelly affirmed his overweight rating on Target and lifted his share-price target to $155 from $135.

He has "improving confidence in the company's ability to capitalize on current dislocations," he wrote in a commentary cited by The Fly.

Kelly maintains that "strong covid-related demand, [government] stimulus, share gains, and attractive company-specific positioning should drive comparable sales and earnings above consensus in both" Target and Walmart.

He likes Target better than Walmart, maintaining his equal-weight rating on the latter.

Morningstar analyst Zain Akbari is impressed with Walmart, but sees its shares as overvalued at the moment. He puts fair value at $111.