Costco Gets a Buy Rating from Oppenheimer

By Jason Carr

In a report released today, Brian Nagel from Oppenheimer reiterated a Buy rating on Costco (NASDAQ: COST), with a price target of $185. The company’s shares closed yesterday at $174.73.

Nagel commented:

“Outperform-rated Costco (COST) reported fiscal Q3 (period ended May 7th) results after the close on Thurs., May 25th. Adjusted EPS in the period of $1.40 topped a Street figure of $1.31, upon a 5% comp sales gain (ex. foreign currency and gas) and improved margins. COST quarterly reports tend to prove largely non-events for shares. As we examine the trends reported by COST, we find a few key positives: 1) sales at the chain seem to have improved further later in the period and into May; 2) gross margins picked up as key initiatives took hold and “gas noise” moderated; and 3) the company’s new credit card offer continues to yield gains throughout the P&L.”

According to TipRanks.com, Nagel is a 2-star analyst with an average return of 0.5% and a 50.8% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Dick’s Sporting Goods, and Advance Auto Parts.

Costco has an analyst consensus of Strong Buy, with a price target consensus of $184.50.

The company has a one year high of $183.18 and a one year low of $142.11. Currently, Costco has an average volume of 2.31M.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Costco Wholesale Corp. operates membership warehouses based on the concept that offering members low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories. It operates warehouses in the U.S., Canada, the United Kingdom, Japan and Australia and through majority-owned subsidiaries in Taiwan and Korea. The firm warehouses present exclusive product category selections to be found under a single roof, which include appliances, auto and tires, baby, kids and toys, clothing and handbags, computers and printers, electronics, food and gift baskets, funeral, furniture, gift cards, tickets & floral, hardware health & beauty, home & decor, jewelry & watches, office products, patio, outdoor & pets, sports & fitness, travel & luggage. It also provides ancillary and other services that include gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel. The company was founded by James D. Sinegal and Jeffrey H. Brotman in 1983 and is headquartered in Issaquah, WA.