Deutsche Bank, Cowen Bump Up PT On Costco Wholesale

  • Cowen analyst Oliver Chen raised Costco Wholesale Corp's COST price target to $520 (implying a 13% upside) from $440 and maintained an Outperform rating on the shares.
  • The analyst noted continuing positive momentum and that the company is poised for ongoing share growth.
  • Chen said record renewal rates and Executive Memberships are compelling leading indicators.
  • Deutsche Bank analyst Krisztina Katai raised Costco's price target to $468 from $424 (implying a 2.5% upside) and kept a Hold rating.
  • Katai said Costco started out the fiscal year "firing on all cylinders."
  • Loop Capital analyst Laura Champine kept her Buy rating and $515 price target on Costco after its better than expected September sales data.
  • The analyst is cutting her FY23 EPS view by 3c to $13.26 on expectations of impact from higher supply chain costs but also raises her Q1 sales forecast by about $500 million to $48.0 billion.
  • The company's long-term growth and stability deserve modestly higher multiples, and the stock should appreciate as earnings estimates are upwardly revised, Champine notes.
  • DA Davidson analyst Michael Baker maintained his Neutral rating and $423 price target on Costco but nudged his FY22 and FY23 EPS views by 2 cents to $11.81 and $12.84, respectively.
  • The analyst notes that the company's core U.S. comp at 10% reported yesterday was ahead of his estimate of 5.0% and equates to 26.7% on a two-year basis, which represents the highest level of increase on record that goes back to 2014.
  • Price Action: COST shares are trading higher by 1.49% at $455.82 on the last check Thursday.

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