Donald Trump Tells Walmart (WMT) to ‘Eat the Tariffs’
Walmart, however, is pursuing a strategic approach aimed at maintaining its price advantage. By selectively absorbing some tariff-related costs, the company aims to preserve its competitive edge and potentially grow market share as rivals face similar pressures. With its scale, negotiating leverage, and deep financial reserves, Walmart is well-positioned to weather the current tariff environment—and may emerge even stronger in the long term.
Is Walmart a Buy, Sell, or Hold?
On Wall Street, WMT sports a Strong Buy consensus rating based on 28 Buy, two Hold, and zero Sell ratings in the past three months. Its average price target of $109.31 implies a 13.24% upside potential over the next twelve months.
KeyBanc analyst Bradley Thomas maintains an Overweight rating on Walmart (WMT) with a $105 price target. He cites the company’s strong first-quarter results amid a “volatile backdrop and tariff noise.” He highlights Walmart’s continued market share gains in grocery and its solid positioning to navigate broader macroeconomic challenges.
Similarly, Wells Fargo analyst Edward Kelly has a Buy rating and a $108 price target on WMT. He praised the retailer’s resilience and strategic agility, emphasizing its preparedness to manage the current tariff landscape through disciplined pricing, inventory control, and a clear focus on long-term financial objectives.
As Walmart Sidesteps Tariff Turmoil, Consumers May Pay the Price
In summary, Wall Street remains broadly confident in Walmart’s ability to navigate the complex and uncertain tariff landscape under President Trump. While the burden of these tariffs will ultimately fall on American consumers, Walmart’s scale, global supply chain expertise, and political leverage position it better than most to absorb the impact. Although its reliance on Chinese imports makes it somewhat more exposed, the entire retail sector is feeling the strain.
Walmart’s response carries broader implications—not just for retail, but for the U.S. economy as a whole. If a company of Walmart’s size and sophistication struggles to weather these challenges, it raises serious questions about the resilience of smaller players. That said, investors can take comfort in Walmart’s proven adaptability and strategic focus, even as some near-term volatility should be expected. For me, Walmart remains a cornerstone holding, well-equipped to emerge from this period even stronger.
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