Costco Wholesale (COST) PT Raised to $1,100 at Raymond James

Raymond James analyst Bobby Griffin raised the price target on Costco Wholesale (NASDAQ: COST) to $1,100.00 (from $1,000.00) while maintaining a Outperform rating.

The analyst commented, "We reaffirm our Outperform rating and raise our price target to $1,100 (from $1,000) following Costco’s F2Q results. For the quarter, adj. EPS outperformed consensus expectations, while EBIT margin was in line. Adj. EPS of $4.58 (+14% y/y) reflected healthy traffic (+3.1% worldwide), resilient ticket growth (+3.5% ex. gas/FX), and continued membership fee strength (up ~14% y/y). Equally important, Costco continues to see positive engagement with their digital channels as 1) digitally-enabled comps (ex. FX) grew ~22% y/y, and 2) website and app traffic increased +32% y/y and +45% y/y, respectively. In our view, the one blemish in the quarter was the modest sequential decline in U.S./Canada renewal rates (~10 bp). Nevertheless, we look at this as transitory (higher online sign-ups) and believe our favorable thesis remains intact."

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