Goldman: Costco Now Worth $154/Share

Loading...
Loading...
In a report published Monday, analysts at Goldman Sachs maintained their Neutral rating on
Costco Wholesale CorporationCOST
. The price target was lowered from $155 to $154. The company posted its U.S. same-store sales for March/April below the levels witnessed in the past several months. Although the company's March/April same-store sales were weaker than before, they were "still near the top-end of growth posted by most retailers, notably large ones," the analysts said. The weakness in sales was partially mitigated by lesser Fx headwinds. Goldman Sachs has accordingly lowered its 3Q15 EPS estimate from $1.17 to $1.15, while raising the EPS estimates for FY16 and FY17 to $5.50 and $6.10, respectively. The analysts believe that "earnings momentum has peaked for this gas cycle… food inflation is moderating, and sales trends in recent months ticked down slightly." In the next six months, Goldman Sachs expects investors to start focusing on the earnings drivers for 2016-2017, including a potential credit card agreement with
Visa IncV
, which is expected to be accretive for Costco.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsGoldman Sachs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...