Piper Jaffray Remains Bullish on Costco Wholesale (COST) Ahead of June Sales Results

Piper Jaffray maintains an Overweight rating and $154.00 price target on Costco Wholesale (NASDAQ: COST) ahead of June results. Analyst Sean Naughton recommends Costco shares, and believes that the new Visa deal and potential membership fee increases are not fully baked into longer-term numbers.

Naughton commented, "For June, we are projecting core comparable sales results of +5 to +7% and reported results of -1% to +1% with gas prices and FX representing a 650bp sales headwind to our estimates. June results cover 34 selling days including the Independence Day holiday weekend which is comparable to last year. While FX/gas headwinds will probably persist for the time being and weigh on reported results, we think estimates largely reflect these concerns and focus will be on traffic and core comps. We continue to recommend Costco shares as we think it is a defensible model and believe the new Visa deal and potential membership fee increases are probably not fully baked into longer-term numbers."

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 $135.88 yesterday.

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