Cowen Reiterates Outperform as Costco Wholesale (COST) Remains Confident on Comp Growth

September 30, 2016 7:37 AM EDT
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Price: $150.04 +0.39%

Rating Summary:
    17 Buy, 11 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 19 | New: 11
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Cowen reiterated an Outperform rating and $170.00 price target on Costco Wholesale (NASDAQ: COST) following the company's 4Q earnings report and conference call. COST acknowledged recent Cowen proprietary data which indicates Amazon Prime's footprint broadening and could pose a greater threat to Costco given a growing overlap of Prime & Costco members. However, management remains confident that it can continue deliver consistent solid comp store sales growth.

Analyst Oliver Chen commented, "We reiterate our Outperform rating on COST as we expect healthy global sq. ft. growth & comp store sales growth to continue given elite & diversified assortment, broadening customer base w/ co-branded Visa card, & prospects to raise membership fees. Risks: deflationary food pricing pressures will persist 1-2 qtrs, COST not immune to online, & valuation lofty. Tweak estimates; maintain $170PT."

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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