Barclays Maintains an 'Equalweight' on Costco Wholesale (COST); 1Q12 Preview
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Price: $932.76 -2.53%
Rating Summary:
27 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 14 | New: 21
Rating Summary:
27 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 14 | New: 21
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Barclays maintains an 'Equalweight' on Costco Wholesale (NASDAQ: COST) price target of $85.00.
Barclays analyst says, "We are expecting EPS of $0.80, in line with consensus. We are expecting sales to increase 11.9% to $21.1 billion, consisting of a 10.0% comp increase vs. a 7.0% comp a year ago, benefiting from strong traffic (+4.0%-4.5%) and increased average transactions (+4.0%-5.0%). Higher y-o-y gas prices and slightly stronger y-o-y foreign currencies are expected to have a positive impact on comps. We are forecasting a 9.5% increase in membership fee income to $455 million, and therefore a total revenue increase of 11.9% to $21.5 billion."
"With our expectation for continued muted gross margin performance in FY12 due to the impact of higher gasoline sales to the mix, we are reducing our FY12 and FY13 estimates to $3.90 and $4.50, respectively."
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 $88.06 yesterday.
Barclays analyst says, "We are expecting EPS of $0.80, in line with consensus. We are expecting sales to increase 11.9% to $21.1 billion, consisting of a 10.0% comp increase vs. a 7.0% comp a year ago, benefiting from strong traffic (+4.0%-4.5%) and increased average transactions (+4.0%-5.0%). Higher y-o-y gas prices and slightly stronger y-o-y foreign currencies are expected to have a positive impact on comps. We are forecasting a 9.5% increase in membership fee income to $455 million, and therefore a total revenue increase of 11.9% to $21.5 billion."
"With our expectation for continued muted gross margin performance in FY12 due to the impact of higher gasoline sales to the mix, we are reducing our FY12 and FY13 estimates to $3.90 and $4.50, respectively."
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 $88.06 yesterday.
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