Costco Wholesale (COST): Patience Brings Rewards - UBS

September 30, 2016 9:12 AM EDT
Get Alerts COST Hot Sheet
Price: $164.24 +0.33%

Rating Summary:
    19 Buy, 10 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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UBS analyst, Michael Lasser, reiterated his Buy rating on Costco Wholesale (NASDAQ: COST) after the company reported earnings. The quarter was largely in-line with expectations, which should be met with relief as the market feared there would be downside. A lower than expected tax rate contributed ~$0.05 to the 4Q EPS but most of the key measures were as anticipated.

MFI of $832 mm met the consensus forecast. The underlying metrics remained healthy & consistent as the company saw a 7% overall increase in members, driven by an 87.6% renewal rate worldwide. Online sales growth remained solid at 12% even as it decelerated slightly on a tougher compare.

The company provided indications its reported comps should accelerate in the coming periods as deflation in categories like proteins fades & the loss of tobacco sales become less of a factor.

No change to the price target of $180.

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 $147.49 yesterday.

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