Analyst Raises Targets On These 2 Big Retailers, But Warns On Consumer Trends

Bernstein raised price targets on Walmart and Costco ahead of their upcoming earnings, potentially supporting retail shares into results. Walmart’s target was lifted to 145 (from 134) and the stock is forming a cup-with-handle near a 132.46 buy point; Walmart reports May 21 with consensus EPS $0.66 and sales $174.646B. Bernstein also raised Costco’s target to 1,192 (from 1,170); Costco reports May 28 with consensus EPS $4.97 and sales $69.497B and needs a breakout above 1,031.27. The firm cut Dollar Tree’s target to 115 (from 117) and kept a market-perform rating, noting weaker technicals. Market impact is mixed: positive for Walmart/Costco heading into earnings, cautionary for lower-income-consumer plays like Dollar Tree due to economic headwinds and lagging relative strength lines.