Shares of Walmart sold off on Thursday following earnings and kept trading lower Friday as numerous firms reduced price targets on shares of the retail giant. Now, the beaten down stock offers a "compelling opportunity," according to Bank of America.

Walmart stock declined 0.9% to $102.71 on Friday after sinking more than 9% on Thursday. Shares on Friday were on pace for their worst closing price since Nov. 19, 2025, according to Dow Jones Market Data.

Around 20 firms on Thursday and Friday lowered price targets on Walmart stock as lower drug prices from federal regulations passed during the Biden administration put a damper on same-store sales.

U.S. same-store sales in the second quarter rose just 2.6% during the three months ending in July-the slimmest increase since early 2020. The retail giant, otherwise, reported solid earnings.

Bank of America analyst Christopher Nardone chose to focus on the bright spots.

"We think the pullback in shares offers a compelling opportunity to own a secular share gainer," wrote Nardone, who lowered his price target to $126 from $144 but maintained a Buy rating.

Nardone added that while the deceleration in U.S. comparable sales was disappointing, the negative stock reaction was "amplified" by the "premium valuation."

"We think there were positive data points under the hood this quarter that suggest Walmart is still on track to gain market share and improve longer term profitability," the analyst added.

The perspective makes sense. Walmart stock is down 23% from its record closing high of $134.20 from May 19 and is up just 6% over the past 12 months.

Bank of America sees the increased sales guidance for the second half of the year as a positive and noted that Walmart's step-up in capital spending expectations signals confidence in successful return on investment.

Nardone also noted that raised guidance includes $2 billion of incremental fuel costs and that while that's a headwind, the positive was that management still hiked its outlook.

A big standout for the firm also was that Sam's Club U.S. same-store sales accelerated sequentially to 4.4% and that the Walmart's e-commerce segment remained robust.

Nardone wasn't alone in his view that the pullback makes Walmart, in some ways, more attractive.

Guggenheim analyst John Heinbockel on Friday maintained a Buy rating on Walmart but reduced his price target to $130 from $135.

"The specter of temporarily slowing sales amid a premium valuation tempered the shares' usual risk-off characteristic," Heinbockel wrote.

The analyst, however, wrote that the share price decline improved the "risk/reward profile upon a recovery" which he believes is likely to occur in early 2027.

There were those on Wall Street, including Morgan Stanley analyst Simeon Gutman, who took a grimmer view of Walmart's earnings and share selloff.

Gutman noted Thursday the decelerating U.S. comparable sales show the compounding impact of a weaker macroeconomic environment, elevated gas prices, and slowing consumer sentiment.

While the bull case for the retail giant may have been weakened, Wall Street was ready to look for a silver lining. In this case, that might be buying a premium valuation stock on the cheap.