Oppenheimer would take advantage of any weakness on Walmart results

Ahead of Walmart’s quarterly results, Oppenheimer says it expect another strong top-line delivery fueled by the grocery business more than offsetting headwinds in key discretionary categories and margin pressures. The firm now projects a Walmart U.S. comp increase of 6% in Q4, up from +3% previously, but margin headwinds could somewhat limit EPS flow-through associated with a stronger comp. Investor focus likely shifts to 2023 guidance. Amid macro uncertainty and company-specific headwinds, such as an estimated $1B LIFO charge and the recent minimum wage increase, Oppenheimer expects a below-algorithm guide. The firm would be positioned to take advantage of any weakness on the print. Oppenheimer has an Outperform rating on the shares with a price target of $160.