Costco Wholesale (COST) PT Lowered to $1,033 at Truist Securities
Truist Securities analyst Scot Ciccarelli lowered the price target on Costco Wholesale (NASDAQ: COST) to $1,033.00 (from $1,042.00) while maintaining a Hold rating.
The analyst commented: "Another quarter, another strong print, but valuation still gives us pause; COST delivered a strong qtr, including +6.4% core comp growth. While EBIT mrgs were a touch below our est due to slight SG&A deleverage (wage investment & increase in gen liability charges/reserves), they were still slightly higher YOY & higher int income drove EPS a touch above our est. Further, the new executive member benefits (exclusive shopping hours, Instacart credit) are leading to a significant number of trade-ups. Overall, the biz remains strong & we believe the co’s extreme value prop will lead to continued share gains but with COST trading at a ~50x FTM multiple, we believe it's challenging to put fresh $ to work. Remain Hold. PT to $1,033 from $1,042."