Piper Jaffray Reiterates Overweight Rating On Costco

According to Piper Jaffray, Costco

Overweight rating is reiterated. Piper Jaffray said that it is reiterating its OW rating with a PT of $88 following the reported May +13% comp, which was at the upper end of our range of +12% to +13% and easily exceeding consensus of ~+10.5%. “The total comp accelerated slightly from April of +12% and was in line with March of +13%. The May core merchandising comp (ex. f/x, gas, cannibalization) was +7% and was a deceleration from the April core comp of +8.8%. There were no calendar shifts this month, however, June will have one extra selling day this year due to the fourth of July closing shifting back into the month of July. We estimate that this will positively impact the comp by over 100bps. We continue to be encouraged by comp strength across most major merchandise categories and believe inflation will continue to be a factor in the coming months.” Costco closed yesterday at $80.21.