Piper Jaffray Comments on Costco Wholesale

Piper Jaffray provided color on Costco Wholesale

in a research report published today following the company's traffic, core merchandise and

. Piper Jaffray has an Overweight rating and $111 price target on the company. In the report, Piper Jaffray stated, "Overall, we believe these results are an incremental positive for the stock given continued +LSD to +MSD traffic trends and core merchandise comps." Later in the report, Piper Jaffray noted, "The stock is currently trading at 9.0x our FY13 EBITDA estimate, below its 9.8x average over the last 5 years. We believe this discount is unwarranted given the reaccelerating unit growth prospects, higher contribution from membership fee income, consistent share gains and strong ROIC." Shares of Costco Wholesale were trading at $92.80 at the time of posting, down 1.49% from Tuesday's market close.