Bernstein analyst Zhihan Ma lowered the firm’s price target on Costco (COST) to $1,148 from $1,153 and keeps an Outperform rating on the shares. The firm sees limited tariff risks given its bargaining power and ability to swap SKUs in and out with its highly selective, curated merchandise. However, the stock is priced for perfection at about 53-turns price to earnings. Should any sustained deceleration in comparable sales growth be seen, this could introduce downside risk and present a better entry point, Bernstein adds.
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