Costco: Jefferies raises target price
(CercleFinance.com) - Jefferies reiterates its 'buy' recommendation on Costco shares, with a target price raised from $860 to $1050, following the warehouse chain's announcement of an increase in its membership fees, on the sidelines of its latest monthly sales update.
We believe this is a positive catalyst for earnings and the stock, the broker says, which estimates the potential benefit of this measure at around 3% on EPS in each of the next two years.
Jefferies even adds that it sees potential for a higher valuation multiple from now on, also on the basis of continued productivity growth, and considers that "Costco remains a top pick".
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
We believe this is a positive catalyst for earnings and the stock, the broker says, which estimates the potential benefit of this measure at around 3% on EPS in each of the next two years.
Jefferies even adds that it sees potential for a higher valuation multiple from now on, also on the basis of continued productivity growth, and considers that "Costco remains a top pick".
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.