UPDATE - UBS Initiates Coverage on Costco (COST) with a Neutral; A Cult Stock: Waiting For A Better Entry Price Before Joining
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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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UPDATE - UBS initiates coverage on Costco (Nasdaq: COST) with a Neutral rating. PT $87.
UBS analyst says, "Costco's business model is best in class among wholesale club operators. The company is well positioned to grow earnings in spite of a difficult consumer environment due to its reliance on membership fee income (~76% of operating income) derived from a base of higher income U.S. consumers willing and able to spend in pursuit of value."
"Current trading levels when adjusted to reflect increased earnings power from perfect execution of recent membership fee increases brings Costco’s current PE to ~20x, inline with the stock’s long-term average absolute multiple, and a 65% premium to the broader market, near peak relative valuation levels. While we view Costco as a strong fundamental story with defensive characteristics, we believe investors could see a better entry point over the coming 6-12 months."
To see more ratings on COST, Click Here
UBS analyst says, "Costco's business model is best in class among wholesale club operators. The company is well positioned to grow earnings in spite of a difficult consumer environment due to its reliance on membership fee income (~76% of operating income) derived from a base of higher income U.S. consumers willing and able to spend in pursuit of value."
"Current trading levels when adjusted to reflect increased earnings power from perfect execution of recent membership fee increases brings Costco’s current PE to ~20x, inline with the stock’s long-term average absolute multiple, and a 65% premium to the broader market, near peak relative valuation levels. While we view Costco as a strong fundamental story with defensive characteristics, we believe investors could see a better entry point over the coming 6-12 months."
To see more ratings on COST, Click Here
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