Stifel Resumes Costco Wholesale (COST) at Buy
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Stifel resumes coverage on Costco Wholesale (NASDAQ: COST) with a Buy rating and a price target of $185.00.
Analyst Mark Astrachan commented, "We are resuming coverage of Costco Wholesale Corp. with a Buy rating and a $185 target price, 14x F2018E EBITDA, supported by our sum-of-the-parts analysis. We estimate modest multiple expansion driven by accelerating sales and operating profit growth in F2017 and F2018 driven by improving comp growth. Anticipated comp improvement reflects favorable y/y comparisons, macro trends, benefits from the mid-2016 change to the Citi Visa credit card, an anticipated late F1H17 announcement of a membership fee increase, and rising gas prices. Current valuation is reasonable, in our view, with the premium to peers justified by Costco’s annuity-like membership fee and historical renewal rates."
Shares of Costco Wholesale closed at $164.27 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesStifel, Citi
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