Costco price target lowered to $1,153 from $1,177 at Bernstein

Bernstein lowered the firm’s price target on Costco (COST) to $1,153 from $1,177 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.