Costco Wholesale (COST): Pullback Is Buying Opportunity - Cowen

September 26, 2016 6:58 AM EDT
Get Alerts COST Hot Sheet
Price: $163.67 +0.40%

Rating Summary:
    19 Buy, 10 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Cowen analyst, Oliver Chen, reiterated his Outperform rating on shares of Costco Wholesale (NASDAQ: COST) and believes that COST is a top un-Amazonable picks and the recent stock pullback post-August comp miss is a buying opportunity. COST reports EPS on Thursday, 9/29 (AMC).

The analyst anticipates a meet or beat quarter for EPS. He is expecting 4Q revenues of $35.7bn, up +2% from $35.0bn last year with 4Q overall comps of flat y/y (+3% ex. gas & F/X) driven by: U.S. core comps at flat y/y (+2% ex. gas & F/X); Canada comps up +2% (+5% ex. gas & F/X); and other international comps down -2% (up +1% ex. gas & F/X). For 4Q, we model gross margin up +17bps to 11.31% (vs. Street's 11.29%), and op margin at 3.31% (vs. Street's 3.26%), yielding 4Q EPS of $1.75E slightly ahead of Street's $1.73E.

No change to the price target of $170.

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 $152.53 yesterday.



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