Costco November comps accelerating, says DA Davidson

DA Davidson analyst Michael Baker keeps a Neutral rating and $570 price target on Costco but notes that the company’s November comps of 3.5% accelerated from 3.0% last month. On a three year stacked basis, the core U.S. comp was up 16.7%, which was a slight slowdown from the 18.8%-20.9% range over the, previous three months, but the trend also suggests that comps are “relatively stable”, the analyst tells investors in a research note. Costco has been an outperformer in the space, but the firm remains at neutral given the stock’s premium 37.6-times next-12-months’ earnings multiple, DA Davidson adds.