UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Costco Wholesale Corporation

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Costco Wholesale Corporation COST, and raised its price target from $107.00 to $110.00. Deutsche Bank noted, “Our Buy rating is predicated on Costco's (1) healthy, traffic-led SSS trends; (2) multiple EBIT margin drivers, including the cycling of last year's offensive price investments (beginning in September 2012); (3) an acceleration in club growth in FY13; & (4) multiple layers of EPS cushion (MFI Increase/Buybacks). These strengths give us more confidence that Costco can play offense and defense at the same time - a unique set-up in retail today. We see material upside.” Costco Wholesale Corporation closed on Tuesday at $97.00.