RBC Capital analysts raised Walmart's (NYSE:WMT) price target to $105 from $96, maintaining an Outperform rating on the stock. The revision reflects optimism about the retailer's profit growth potential, driven by advertising and membership income.

The analysts projected that these income streams would bolster Walmart’s competitive pricing against peers, facilitating continued market share expansion and enhancing the profitability of its e-commerce operations. Increased Walmart+ memberships and an expanding marketplace assortment were expected to drive a shift back toward general merchandise, further supporting margin improvements.

The revised price target is based on a multiple of approximately 33 times the 2026 EPS estimate of $3.19, slightly above consensus projections of $3.08. While the valuation may prompt some investor hesitation, the analysts highlighted Walmart’s significant long-term earnings growth potential extending beyond 2026.