10:44 AM EDT, 08/22/2025 (MT Newswires) -- Walmart's ( WMT ) sales and margin trends remained strong in Q2 despite higher-than-expected general liability claims pressure, BofA Securities said in a Thursday research report.

The brokerage modeled Q3 adjusted EPS of $0.60 and maintained its fiscal 2026 adjusted EPS estimate of $2.60 to reflect its forecast for 3% US comps in H2 and easing liability claims pressure. For 2027 and 2028, BofA raised its EPS estimate to $2.94 and $3.19, respectively, from $2.90 and $3.15 earlier, according to the note.

Walmart's ( WMT ) efforts to keep prices low to drive further share gains in H2, while its strong Back to School results support its holiday outlook. The company is positioned to tackle tariffs on the back of its broad multi-category assortment, strong supplier relationships, as well as its pricing, automation, and inventory management abilities, analysts wrote.

Walmart's ( WMT ) strong value offering and digital convenience are likely to result in further share gains across incomes and product segments. "Its outlook for [long-term] profitability continues to improve with support from growth in higher-margin ancillary businesses & improving core ecom losses. Share buybacks should also support WMT's near-term outlook," according to BofA.

The brokerage said it reiterated its buy rating on the stock with a price target of $120 per share.

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