03:31 PM EDT, 05/12/2025 (MT Newswires) -- Walmart's ( WMT ) "deep relationships" with suppliers and inventory management are some of the factors that should help the retail giant manage potential tariffs-related headwinds, BofA Securities said in a note e-mailed Monday.

The company is scheduled to report its fiscal first-quarter results Thursday. BofA expects adjusted earnings of $0.59 a share on revenue of $166.08 billion. Wall Street is looking for $0.58 and $166.02 billion, respectively, according to BofA. The brokerage pegs US same-store sales growth at 3% for the quarter versus the Street's views for a 3.6% increase.

"While not immune, we see (Walmart ( WMT )) well positioned to manage tariffs given deep relationships with suppliers, advanced pricing, automation and inventory management, and potential to shift imported (first party) goods to (third party) marketplace," BofA analyst Robert Ohmes said in a note to clients.

The brokerage reiterated its buy rating on the Walmart ( WMT ) stock, with a $120 price objective, citing continued share gains across product categories and incomes.

US and China reached an agreement on a 90-day suspension of reciprocal duties following their talks in Switzerland over the weekend. The two sides had been in a trade war since President Donald Trump's announcement of sweeping new tariffs early last month. Last week, Trump announced a trade deal with the UK.

"Even in a more challenging macro, (Walmart's ( WMT )) scale and unique position in omni-channel position it to continue growing digital ad (dollars), as does (continued) growth in marketplace sellers and Vizio acquisition," Ohmes wrote. The retailer's outlook for long-term profitability continues to improve with backing from digital advertising, third-party marketplace and improvements in core e-commerce losses, according to the note.

Walmart ( WMT ) closed its roughly $2.3 billion purchase of smart-TV maker Vizio in December.

Last week, UBS Securities said Walmart's ( WMT ) potential to deliver "durable and predictable" earnings amid tariffs-induced macro uncertainty is likely to result in outperformance for its stock. Separately, RBC Capital Markets said Walmart ( WMT ) is positioned well to navigate through tariffs and offset the potential impact of duties compared with its rivals.

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