Walmart's (WMT) long-term investment case remains intact despite moderating US core growth, as its expanding e-commerce, advertising, marketplace, membership, Sam's Club and international businesses could help offset slower comparable sales growth and support continued earnings growth, UBS Securities said.

The investment firm said in a Thursday note that Walmart's emerging growth businesses, including US e-commerce, advertising, marketplace, membership income and international sales, continue to show strong momentum and are becoming increasingly important to the retailer's earnings profile.

The analyst also highlighted improving gross margins and incremental e-commerce margins, which supported Walmart's higher earnings outlook despite headwinds, while noting that increased rollbacks could boost traffic and sales, though the impact remains uncertain.

Walmart raised its fiscal 2026 outlook for constant currency net sales growth to 4% to 5%, operating income growth to 7% to 8.5% and EPS to $2.80 to $2.87. UBS said the full-year EPS guidance could prove conservative as the retailer seeks to resume a pattern of beating and raising expectations.

UBS maintained its buy rating on the stock and lowered its price target to $130 from $141.

Walmart shares were down 1% in Friday trading.

Price: 102.52, Change: -1.08, Percent Change: -1.04