Piper Jaffray Cuts Price Target on Costco Wholesale (COST) Ahead of 3Q Report
Piper Jaffray maintained an Overweight rating on Costco Wholesale (NASDAQ: COST), and cut the price target to $171.00 (from $173.00), ahead of the company's 3Q earnings report. COST is scheduled to report earnings on May 25th.
Analyst Sean Naughton commented, "Ahead of Q3 earnings, we continue to recommend COST. While comp trends have slowed (along with the rest of the retail landscape), we do believe expectations are reasonably set for the quarter. Additionally, we think there will be a continued membership benefit from the LivingSocial deal in Q3 and would note the fee income benefit should play out over the course of the next twelve months. Valuation relative to the market has improved recently (now below 10-year historical average) and we believe industry-leading returns on capital, upcoming catalysts and the improved valuation make this a good entry point for investors."
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 $142.01 yesterday.