Costco Wholesale (COST) PT Raised to $385 at Stifel

Stifel analyst Mark Astrachan raised the price target on Costco Wholesale (NASDAQ: COST) to $385.00 (from $370.00) while maintaining a Buy rating.

The analyst commented, "Costco reported total and U.S. core March comp growth of 11.1% and 11.3%, compared to consensus for 8.5% and 8.0%, respectively.One fewer selling day hurt comps by 1.5%-2.0%, implying a beat versus consensus of more than 4pts. The 2-year comp CAGR was largely flat sequentially as the company lapped year ago lockdowns but remained elevated, at low-double-digits, underpinned by strength in non-foods and ancillary services.Traffic increased 3.3% globally, and 3.0% in the U.S., while average ticket increased 12.3%. E-commerce growth was lower sequentially, up 54.5%, lapping more difficult comps, though the 2-year comp CAGR was flat sequentially, indicating ongoing digital shopping adoption/penetration. We think it is also likely that stimulus payments contributed to strong March comp performance, though ongoing absolute strong growth shows sustained share gains for Costco. We maintain our Buy rating and lift our price target to $385, or 19x F2022E EBITDA."

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