Dahlman Rose Starts Costco Wholesale (COST) at Hold, Notes to Take Advantage of Pull-backs
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Price: $933.51 -2.45%
Rating Summary:
27 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
27 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Dahlman Rose initiates coverage on shares of Costco Wholesale (NASDAQ: COST) with a Hold rating, but believes that it is one of the best retail stories globally.
The company has been able to report consistent growth as it long term focuses on membership retention, limited assortment, low prices, and high-quality products. COST's membership fees account for 70 percent to 80 percent of its total operating profits, while its product sales growth continues to outperform its retail peers.
The firm believes that Costco is target market is strong given that top earners are beginning to spend again, but also that the saving trend is still widely present among all people.
An analyst at Dahlman Rose comments, " The current multiple is at the high end of its historic range, and as a result, we think there is limited upside from here near term. Costco has a long-term outlook and so should investors. Pull-backs are frequent -- watch out for these opportunities."
For more ratings news on Costco Wholesale click here and for the rating history of Costco Wholesale click here.
Shares of Costco Wholesale closed at $80.68 yesterday.
The company has been able to report consistent growth as it long term focuses on membership retention, limited assortment, low prices, and high-quality products. COST's membership fees account for 70 percent to 80 percent of its total operating profits, while its product sales growth continues to outperform its retail peers.
The firm believes that Costco is target market is strong given that top earners are beginning to spend again, but also that the saving trend is still widely present among all people.
An analyst at Dahlman Rose comments, " The current multiple is at the high end of its historic range, and as a result, we think there is limited upside from here near term. Costco has a long-term outlook and so should investors. Pull-backs are frequent -- watch out for these opportunities."
For more ratings news on Costco Wholesale click here and for the rating history of Costco Wholesale click here.
Shares of Costco Wholesale closed at $80.68 yesterday.
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