Oppenheimer Raises Price Target on Costco Wholesale (COST) to $185

Oppenheimer reiterated an Outperform rating on Costco Wholesale (NASDAQ: COST), and raised the price target to $185.00 (from $175.00). For 2017, Oppenheimer continues to look for EPS of $5.86 compared to the Street's figure of $5.92.

Analyst Brian Nagel commented, "We have for a long while looked upon Costco (COST) as one of the best-run and most powerful retail chains in the world. In mid-2015, in a report entitled A Rare Opportunity in COST (7/10/15 at $139.45), we lifted our rating on COST to Outperform, upon various "percolating fundamental catalysts" and a discounted share valuation. As we begin to formulate our Hardlines investment strategy for 2017, we are increasingly optimistic that COST should represent one of the sector's most intriguing large-cap names. Shares remain inexpensive, while the combination of a seemingly imminent membership-fee hike, benefits of a new credit card relationship, and waning sales headwinds, implies a potentially improved underlying earnings trajectory for the chain, even if reported figures stay choppy for a bit longer. Our 12-18 month price target on COST goes to $185 from $175 previously."

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 $161.66 yesterday.

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