Costco Wholesale (COST) PT Lowered to $1,135 at Loop Capital

Loop Capital analyst Laura Champine lowered the price target on Costco Wholesale (NASDAQ: COST) to $1,135.00 (from $1,150.00) while maintaining a Buy rating.

The analyst commented: 'We are maintaining our Buy rating and trimming our price target on Costco from $1,150 to $1,135 on EPS that was a bit light of consensus despite upside to sales estimates. Our PT is driven by our discounted NOPAT model. Costco reported February core comp +8% compared to our estimate and consensus of 7%. FX negatively impacted international segments, but they both beat consensus on a core basis. Gas and FX had a -2.3% impact on headline comp for the February quarter. Despite revenues that were $600MM above consensus, EPS came in seven cents light. This was driven by a deceleration in gross margin expansion. Our rating remains Buy on Costco, as we see outsized value which is driving traffic to clubs. Our F25 EPS estimate of $18.70 is $0.52 above consensus."

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