Walmart price target raised to $108 from $107 at Bernstein

Bernstein raised the firm’s price target on Walmart (WMT) to $108 from $107 and keeps an Outperform rating on the shares. The firm assumes 145% Chinese tariffs and “Liberation Day” tariffs on other markets. Bernstein expects retailers to work with suppliers to lower product costs by 20%-25% by lowering prices, changing product spec, and/or switching suppliers. It then expects retailers to pass on the remaining to consumers, which could drive average prices up by low single digits to high teens percentage and negatively impact volume and traffic. Such tariff impacts could translate into double digits EPS downside, with Dollar Tree (DLTR) and Target (TGT) being the most impacted.