Deutsche Bank Says That It is Time To Finally Upgrade Costco (NASDAQ:COST) Stock


Costco (NASDAQ:COST) Stock Upgrade

Costco (NASDAQ:COST) was hiked by Deutsche Bank from a Hold rating to a more respectable Buy rating in a comprehensive report issued to investors and clients earlier today. They currently have a $200 target on the stock, which implies a possible upside of 21.60% from the closing share price of the stock.

From a total of 23 analysts covering Costco Wholesale (NASDAQ:COST) stock, 19 rate it a ”Buy”, 0 a “Sell”, and 10 a ”Hold”. This means that 66% of the ratings are positive. The highest target price is $185 while the lowest target price is $136. The mean of all analyst targets is $163.96 with a 0.61% above today’s ($164.43) stock price. Costco Wholesale was the topic of 14 analyst reports since August 24, 2015 according to the firm StockzIntelligence Inc. Citigroup initiated shares on November 9 with “Neutral” rating. JP Morgan maintained shares with “Overweight” rating and $162 target share price in a report from an October 5. Northcoast downgraded COST stock in a recent report from November 3 to “Neutral” rating. Sterne Agee CRT maintained the rating on October 2. Sterne Agee CRT has a “Buy” rating and a $154 price target on shares. Finally, Williams Capital Group maintained the stock with “Hold” rating in a report issued on an October 23.

Approximately 1.82 million shares of stock traded hands. Costco Wholesale Corporation (NASDAQ:COST) has risen 12.61% since April 30, 2015 and is uptrending. It has outperformed by 12.90% the S&P500.

Analysts await Costco Wholesale Corporation (NASDAQ:COST) to reports earnings on December, 9. They expect $1.16 EPS, up 3.57% or $0.04 from last year’s $1.12 per share. COST’s profit will be $498.08 million for 35.45 P/E if the $1.16 EPS becomes reality. After $1.73 actual EPS reported by Costco Wholesale Corporation for the previous quarter, Wall Street now forecasts -32.95% negative EPS growth.

Costco Wholesale Corporation is engaged in the operation of membership warehouses in the United States (U.S.) and Puerto Rico, Canada, United Kingdom (U.K.), Mexico, Japan, Australia, Spain, and through majority-owned subsidiaries in Taiwan and Korea. The company has a market cap of $70.60 billion. The Firm operated 663 membership warehouses and an average warehouse is approximately 144,000 square feet. It has 30.63 P/E ratio. The Company’s warehouses generally operate on a seven-day, 69-hour week.

According to Zacks Investment Research, “Costco Wholesale Corp. operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets.” Get a free copy of the Zacks research report on Costco Wholesale Corporation (COST).