Walmart's (WMT) recent share pullback reflects a valuation reset and softer US comparable-sales trends, and the stock's short-term breather is likely to continue, Oppenheimer said Tuesday in a report.

US comparable sales slowed both including and excluding Health & Wellness, while General Merchandise trends decelerated from mid-single-digit growth in Q1 to low-single digits in Q2, Oppenheimer said. Shares now trade at about 34 times next-12-month consensus earnings estimates, down from a peak of 44 times, the report said.

Oppenheimer sees a bottom for the stock in the low $90s to low $100s and remains focused on upside potential in the US General Merchandise category, which it views as a swing factor.

Walmart's management team under CEO John Furner "continues to execute quite well," the report said.

Oppenheimer has a perform rating on Walmart stock and said its longer-term upbeat views on the company are unchanged.

Price: 105.12, Change: -1.37, Percent Change: -1.29