Costco Wholesale (COST) PT Raised to $305 at Citi Despite Slowing Online Growth

December 31, 2019 7:19 AM EST
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Price: $381.83 -0.31%

Rating Summary:
    23 Buy, 11 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 7 | New: 31
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Citi analyst Gregory Badishkanian raised the price target on Costco Wholesale (NASDAQ: COST) to $305.00 (from $304.00) after the company reported a mixed bag in F1Q that saw solid comps but a softer eCommerce trend. US SSS (ex. Fuel/FX) came in at +5.0% (consistent with the company’s November sales release; includes a 50bps headwind from calendar shifts). Comp sales accelerated modestly on a two-year basis to +13.3% vs. +13.0% in 4Q.

The analyst maintained the Neutral rating, stating "Online sales (ex. FX) increased +5.7%, but were negatively impacted by ~12% points during the quarter related to calendar shifts (Thanksgiving and Black Friday shifted out of the quarter). Adjusted for this shift, shifts eCommerce sales would have increased ~17.7%, which is a slower pace than the 4Q trend of +21.9% (ex. FX and revenue recognition change). Management also noted that some of the lost sales online from a Thanksgiving/Black Friday outage were likely recaptured in the warehouse or pushed out to a later date".

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