"After last week's retail carnage, we enter discounter earnings with cautious optimism that lowered expectations can be achieved and full year plans reiterated."
Deutsche Bank's Paul Trussell commented on the first-quarter earnings outlook for the likes of Wal-Mart Stores, Inc. WMT, Costco Wholesale Corporation COST and Target Corporation TGT.
"...we think management teams will have more positive (if guarded) commentary around the state of the consumer than dept. stores," Trussell pointed out.
Trussell adjusted price targets on each of the three discounters, and said he continues to prefer Buy-rated Costco "for its numerous near- and long-term catalysts, even if traffic has softened..."
- Costco - target reduced from $198 to $196 (BZ NOTE: co. set to report on Monday, May 23)
- Wal-Mart - target raised from $62 to $64 (BZ NOTE: co. set to report on Thursday, May 19)
- Target - target raised from $81 to $84 (BZ NOTE: co. set to report on Wednesday, May 18)
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