Costco Wholesale Corporation Up On Oppenheimer Price Target Increase

Costco Wholesale Corporation COST moved higher after Oppenheimer raised its price target from $105 to $120 and reiterated its Perform rating.

Analysts Brian Nagel and Erica Miller listed five factors in their Friday report that “speak to the longer term prowess” of the Costco operating model. The report listed (1) robust store volumes, (2) success in operating outside the US, (3) new unit growth potential in the US and overseas, (4) strong cash flow to support buybacks and dividends and (5) merchandising disciplines which drive traffic and defend against competitors.

The report concluded that the Nagel and Miller “look very favorably on the operating prowess of COST and view the company's substantial recurring membership income as one of the most powerful underlying financial gems in the Retail sector.” Recent weakness in EPS growth should soon “give way to improving trends.”

Costco Wholesale Corporation recently traded at $127.02, up 0.98 percent.