Costco Wholesale (COST) July Comps May Be Light Due To One Less Selling Day - Piper Jaffray
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Piper Jaffray analyst, Sean Naughton, reiterated his Overweight rating on shares of Costco Wholesale (NASDAQ: COST) ahead of the July sales release this Wednesday evening.
July comparable sales should be lighter due to one less selling day this year from a shift in the calendar. The analyst estimates reported comps will be down 3% to 5% and down 0% to 2% ex-gas/FX; adjusting for the July 4th shift (300bp est. impact). The analyst we believes core comparable sales are roughly up 1% to 3%. Costco is set to increase the membership fee in Asian markets, which can contribute $0.04 to EPS over the next 24 months. Comments from Citigroup indicate new signups are tracking ahead of expectations and catalysts still exist (including a potential membership fee increase domestically) to drive improving fundamentals in FY17.
No change to the price target of $171.
Shares of Costco Wholesale closed at $167.56 yesterday.
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Related EntitiesPiper Jaffray, Citi
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