UPDATE: Deutsche Bank Raises PT on Costco on Preferred Defensive Play

In a report published Thursday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Costco Wholesale Corporation COST, and raised the price target from $120.00 to $121.00. In the report, Deutsche Bank noted, “4Q EPS, September SSS on Tap. Despite its expensive valuation, we continue to prefer Costco as a defensive play, as it represents one of the most consistent operators in our group. Its solid traffic and membership renewal rates are unique within a space wrought with uncertainty of late. Costco reports 4Q EPS (and September SSS) on 10/9 and we believe it will post a solid quarterly print. However, we are aware that the potential combination of FX fluctuations, volatile gas prices, and lapping the benefits provided by the extra week last year could impact both GPM and SG&A margins. Buy.” Costco Wholesale Corporation closed on Wednesday at $114.82.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsDeutsche BankGreg Poole
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