UBS Raises PT On Costco, Notes 'Why It's Not Time To Buy'
In a note released Friday, UBS analyst Jason DeRise raised his price target on Costco (NASDAQ: COST) from $120 to $123 while maintaining a Neutral rating.
DeRise explained that, although investors have typically used pull backs as an opportunity to buy shares, it may not be time to jump on the bandwagon. DeRise noted that consensus estimates have consistently been reduced and if his Q3 estimates are correct, it will be the fourth quarter Costco misses.
Moreover, DeRise explained that despite Q3 being historically less profitable than Q2, consensus estimates model a four percent acceleration.
DeRise concluded,"There is upside to our target price, but we don't think it's sufficient to buy."
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