Market Overview

UPDATE: BMO Capital Markets Upgrades Costco to Market Perform, Raises PT

Share:
Related COST
Top 4 NASDAQ Stocks In The Discount, Variety Stores Industry With The Highest Profit Margin
Jim Cramer's View On Priceline Group, J C Penney And Ocwen Financial
Costco to issue $5 dividend (Investor's Business Daily)

In a report published Monday, BMO Capital Markets upgraded its rating on Costco Wholesale Corporation (NASDAQ: COST) from Underperform to Market Perform, and raised its price target from $75.00 to $106.00.

BMO Capital noted, “A central fundamental tenet of our UNDERPERFORM thesis was our concern about contraction in the company's core gross margin rate and the risk it posed to maintaining margin, ex-membership fee income. While core margin rate came under pressure over the past six quarters, the rate of pressure has moderated sequentially, leaving us less concerned. Moreover, 4Q12 operating margin, ex-MFI, improved sequentially on favorable expense leverage, and worldwide renewal rates were up slightly to 86.4% despite the November 2011 fee increase.”

Costco Wholesale Corporation closed on Friday at $97.55.

Latest Ratings for COST

DateFirmActionFromTo
Jan 2015BMO CapitalInitiates Coverage onOutperform
Jan 2015Goldman SachsDowngradesBuyNeutral
Jan 2015JefferiesMaintainsHold

View More Analyst Ratings for COST
View the Latest Analyst Ratings

Posted-In: BMO Capital MarketsAnalyst Color Upgrades Analyst Ratings

 

Related Articles (COST)

Around the Web, We're Loving...

Get Benzinga's Newsletters