Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Costco Wholesale Corporation (NASDAQ:COST) reported impressive fiscal first quarter earnings last week that solidified the bullish case for owning the stock, according to one Wall Street analyst.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
BMO Capital Markets' Kelly Bania upgraded Costco's stock rating from Market Perform to Outperform with a price target boosted from $160 to $215.
The Thesis
Costco now has "more valuation support" for multiple reasons, Bania said in the upgrade note. (See the analyst's track record here.)
Bania said the factors in Costco's valuation include:
- The ability to win a greater share of total spend from its loyal members given a focus on digital relationship.
- Opportunities in personalization.
- Improved member awareness.
- Additional digital services such as potential auto-replenishment.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
These positive catalysts also support a stronger outlook for Costco's membership renewal trends as it improves its demographic and geographic reach and drastically increases membership advantages, Bania said.
Perhaps more important to Costco's story is an acceleration in online sales from less than 15 percent in recent months to 30 percent-plus, Bania said. The warehouse club has enacted a soft launch of two new online grocery services, and this comes at a time when Costco likely realizes that customers who buy groceries online tend to spend more across both online and offline channels, according to BMO.
"Similar to Wal-Mart Stores Inc (NYSE:WMT), we believe COST's valuation could expand as the company widens its competitive moat with a deeper digital relationship with its loyal customer base," Bania said.
Price Action
Shares of Costco are up less than 1 percent at the time of publication — and are up 21 percent since the start of 2017.
This Might Be The Biggest Takeaway From Costco's Q1
MoviePass, Fandor Ink Deal With Costco
Photo from Wikimedia.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.