In a report released yesterday, Edward Kelly from Wells Fargo maintained a Hold rating on Costco (COST – Research Report), with a price target of $1,000.00.
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Edward Kelly has given his Hold rating due to a combination of factors that reflect both the strengths and potential limitations of Costco’s current market position. Despite the company’s strong performance in April, with comp sales exceeding expectations and solid category performance, there are concerns about the valuation being relatively high. The stock is trading at over 50 times the next twelve months’ earnings, which suggests that the risk and reward are balanced at this point.
While Costco continues to demonstrate resilience and strength in its core categories, such as food and general merchandise, and maintains a defensive position against broader economic challenges, the valuation concerns temper the enthusiasm for a more aggressive rating. The impact of the Easter calendar shift and the slightly softer international results also contribute to a cautious outlook, supporting the decision to maintain a Hold rating.
In another report released today, Citi also maintained a Hold rating on the stock with a $927.00 price target.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COST in relation to earlier this year.