Wall Street Strategies Downgrades Costco To Sell, Lowers PT To $65 (COST)

Wall Street Strategies downgraded Costco

from Hold to Sell and lowered Costco's price target from $75 to $65 in a research report published today. In the report, Wall Street Strategies states, "At the heart of those revisions include the following factors: (1) Costco's central philosophy to hold prices at a certain level for longer than peers as price increases are barreling in from manufacturers has negative margin implications; (2) the much ballyhooed membership price increase appears to be off the table for the foreseeable future; and (3) the prospect of further LIFO charges as merchandise inflation increases also has negative margin implications." Shares of Costco were trading at $72.10 at the time of posting, down 2.06% from Tuesday's market close.