Mizuho Raises Walmart (WMT) Target as Consumer Spending Shows Mixed Signals

Walmart Inc. (NASDAQ:WMT) is included among the 12 Best DOW Stocks to Buy in 2026.

On January 5, Mizuho analyst David Bellinger raised his price target on Walmart Inc. (NASDAQ:WMT) to $125 from $115 and kept an Outperform rating. The update came as Mizuho refreshed ratings and targets across retail broadlines, hardlines, and consumer internet names as part of its 2026 outlook. The group heads into 2026 with what Bellinger described as “signs of strained consumer sentiment, although the key underpinnings of spending are still very much intact.” Mizuho named Chewy as its overall Top Pick and removed Walmart, Lowe’s, and O’Reilly Automotive from its Top Picks list.

In a CNBC interview, TD Cowen analyst Chen said the leadership transition at Walmart Inc. (NASDAQ:WMT) is taking place from a position of strength. He pointed to the progress Doug McMillon made in reinforcing the company’s competitive stance against Amazon, especially through its blended bricks-and-clicks model and its push into online, AI, and other technology-driven initiatives.

He described incoming Walmart US CEO John Furner as a proven operator with deep roots inside the company. Furner’s experience running Walmart US stood out, along with his ability to manage people and execution at the same time. Chen said the role requires a mix of judgment, discipline, and technology know-how, and he believes Furner brings all of that to the table.

Chen also emphasized the scale of Walmart US’s grocery business, calling it one of the toughest areas in retail to dominate. From his perspective, Furner is stepping into a business that already runs like a well-oiled machine, especially in food, where consistency and execution matter most. Looking ahead, Chen acknowledged real challenges. Supply chain volatility remains an issue, and the rollout of AI across operations will not be seamless. Even so, he said Walmart’s track record of execution gives it an edge. The company has shown it can integrate technology while maintaining leadership in a core grocery business that anchors the broader operation.

Beyond traditional retail, Chen highlighted Walmart’s growing profit engines. Its digital advertising and retail media business already generates about $5 billion in revenue and operates at margins north of 60%, with room to expand significantly. He also pointed to the marketplace, which supports roughly 500 million sellers today and could grow far beyond that, adding another lever for performance over time.

Walmart Inc. (NASDAQ:WMT) operates as a technology-driven omnichannel retailer, combining physical stores, wholesale clubs, eCommerce platforms, and mobile applications into a single integrated model.

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