The drop in shares of Walmart following the disappointing profit warning creates a great opportunity to buy shares of the retail giant, according to some analysts. On Monday, Walmart slashed profit expectations for the second quarter and full year as it grapples with rising inflation and a shift in consumer spending, in a move that sent home stocks This retail fell more than 8%. To be sure, many analysts believe the findings spell trouble for Walmart and other retailers in the future. That said, the stock is undervalued at these levels, according to Michael Lasser of UBS, who rates Walmart buys with a $152 price target. Stifel analyst Mark Astrachan (holding, $145) also believes Tuesday’s stock reaction could create a possible “clearing event” for Walmart. He said he expects the second quarter to be a “bottom” for future gross margins, but maintains a hold rating on the stock. Despite the short-term troubles, BMO Capital Markets’ Kelly Bania (better, $160) expects Walmart to bounce back and produce a “more stable earnings growth” going forward. “While this announcement is disappointing and highlights low visibility in the consumer landscape, we continue to see WMT’s share price as attractive for a global retailer of difficult scale. copy and locate the best price,” writes Bania of the cutting guide. Jefferies’ Stephanie Wissink (buy, $150) considers the correction a “needed hard reset” and maintains a buy rating on the stock. “While we do not like a guideline from a company that we believe is conducive to an economic downturn, we find this revision more realistic than the previous one,” Wissink wrote. Despite the profit warning, some analysts believe Walmart is still in a better position than its peers in the current economic climate. According to Goldman Sachs’ Kate McShane (buy, $135), many of the current cost pressures are probably temporary and the company’s long-term trajectory will prevail. Meanwhile, Walmart continues to gain market share in the grocery segment, which shows that consumers are trusting the company during these difficult times, said Peter Benedict of Baird (outperform, $140). ). The latest move could represent a push to “clean up” and reduce risk on Walmart’s stock, he said, following John David Rainey’s start as chief financial officer. “However, we maintain our Buy rating as we believe the estimates are risk-reduced and WMT appears to be taking market share in the current environment, which should indicate how attractive it is. lead,” Michael Baker (PT $148) of DA Davidson said in a note to clients. “This should lead to better sales while margins recover in 2023 when inventory is authorized.” – Michael Bloom of CNBC contributed reporting.