Another solid quarter with prudent outlook from Walmart, says DA Davidson

DA Davidson notes that it was another solid quarter with a bit of a prudent outlook from Walmart. After being one of only two of the 14 Retailing/Broadlines & Hardlines names that the firm covers outperforming the market year to date, the stock may give some back on Thursday as expectations were high. Also, at least in the short term, the “risk on” trade is winning. That said, DA Davidson continues to like Walmart due to the company and stock being both defensive and offensive. Some of the near-term cautious outlook is due to what the firm thinks was a slowdown for Walmart in the last two weeks of October. But this was offset by a strong start to November, particularly in apparel, it believes. This could simply be due to weather. But, with this type of volatility, DA Davidson thinks it does make sense for Walmart to be slightly more cautious on the consumer heading into the holiday season. And this potentially sets up for another beat, which has been Walmart’s “M.O. all year,” it adds. DA Davidson has a Buy rating on the shares with a price target of $181.92.