Costco (COST) Set to Make China Push - Baird

Baird analyst Peter Benedict believes Costco Wholesale (NASDAQ: COST) is on the verge of a bigger push into China.

Benedict notes while company has been selling a select number of SKUs on Alibaba's "Tmall Global" platform since 2014 (including clothing, food, health and beauty items), "last week's launch of an official flagship store on the "Tmall" platform (with an expanded assortment of furniture, consumer electronics, and wine) suggests COST has broader ambitions for the market."

The analyst explains that the Tmall Global platform does not require the seller to have a license to operate in-country, but the Tmall platform does.

"Accordingly, it appears COST now has such a license, and thus is clear to open a physical location in China," he commented.

The firm maintained an Outperform rating and price target of $200 on COST.

For an analyst ratings summary and ratings history on Costco Wholesale click here. For more ratings news on Costco Wholesale click here.

Shares of Costco Wholesale closed at $161.48 yesterday.

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