Deutsche Bank Maintains a 'Hold' on Costco Wholesale (COST); Positive on Mexican Joint Venture

June 14, 2012 10:17 AM EDT
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Deutsche Bank maintains a 'Hold' on Costco Wholesale (NASDAQ: COST) price target of $85.00.]

Analyst, Charles Grom, said, "Earlier this morning, COST and Controladora Comercial Mexicana, S.A.B. de C.V. announced that they have executed a definitive agreement, under which Costco Wholesale will purchase from CCM its 50% share interest in Costco de Mexico, S.A. de C.V., a joint venture, for $760.4 million USD."

In conclusion, Grom said, the writing was on the wall as far as consolidating Mexican operations, especially considering the company has $5.9 billion on the balance sheet. Grom sees Costco continuing to expand in Latin & South America.

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 $87.43 yesterday.

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