Costco: Jefferies still on hold after results
(CercleFinance.com) - On Thursday evening Costco Wholesale unveiled net profit of 838 million dollars for Q3 (to 10 May), representing EPS of 1.
89 dollar, four cents below the consensus.
The warehouse group's sales increased by 7.3% to over 36.4 billion dollars as reported.
Following this announcement, Jefferies confirms its hold rating on the share, along with its target price of 288 dollars (current price 304 dollars).
"3Q20 was mixed w/ record fuel profits offset by COVID hits to sales/margins," the broker said.
"COST is a traffic-led concept and a victim of its own success not well suited for the current environment... This remains a best-in-class retailer w/in a highly attractive channel, but at a lofty 19x EV/EBITDA," it adds.
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