UPDATE: Stifel Nicolaus Raises PT to $107 on Costco Wholesale; Q4 Previewed

Stifel Nicolaus reiterated its Buy rating on Costco Wholesale

and raised its price target from $100 to $107. Stifel Nicolaus noted, "Optics look good - calendar 4Q12-1Q13 provide easy gross margin comparisons as EBIT benefits from renewed memberships at higher rate grow. COST continues to let its model work. COST re-invests in lower prices while incremental membership fee income (and EBIT) ramps. We see medium to long term benefits from IT investments in costco.com re-platforming, mobile apps and data systems (the site is much better, we think costco.com can help online sales of Kirkland Signature and can therefore boost gross margin a little over time)." Costco Wholesale closed at $100.51 on Monday.