RBC Capital analysts provided a review of their meeting with Walmart Inc. (NYSE:WMT) CFO John David Rainey. Among the key takeaways, the analysts mentioned: (1) the company's strong Q3 results don't necessarily mean the consumer environment is stable, (2) consumers seem to be getting more sensitive to price, and 3) the team feels they are fairly well equipped to retain increased spend from higher income consumers.

The analysts reiterated their Outperform rating and $163 price target on the company’s shares, with a 2024 EPS estimate of $7.42 (vs. Street’s $7.27).

At these levels, the analysts believe the absolute upside is beginning to feel somewhat limited, but against a weakening consumer backdrop, they think the name is still a strong relative safety play.