Morgan Stanley Remains Bullish on Costco Wholesale (COST) Following New Rewards Program Details

Morgan Stanley reiterates an Overweight rating and $170.00 price target on Costco Wholesale (NASDAQ: COST) following details of new Costco Anywhere Visa Card. The current rewards program, entitled 3-2-1, offers 3% cash back on gasoline, 2% on velocity items and 1% on Costco and other purchases. The new program, laid out below, may be aptly called 4-3-2-1 as it offers 4% cash back on gasoline, 3% on velocity items, 2% on Costco and Costco.com purchases and 1% on all other purchases. Costco indicated to investors that it may elect to reinvest some or all of the savings it realizes from switching to Visa.

Analyst Simeon Gutman commented, "Citi posted details about the Costco Anywhere Visa Card which starts June 20. Consumer rewards on purchases improve by 1%. Enhanced rewards should translate into greater warehouse spending, sign-up bounties, and rebates on outside spend."

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 $151.43 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• AvidBank Holdings Inc. (AVBH) PT Lowered to $23 at Piper Sandler
• Shopify (SHOP) stock rating raised at Morgan Stanley