Costco price target lowered to $484 from $512 at MKM Partners

MKM Partners analyst Bill Kirk lowered the firm’s price target on Costco to $484 from $512 and keeps a Neutral rating on the shares after its Q1 earnings miss. The analyst notes that the company’s comps via inflation are slowing, its core merchandise gross argins are contracting, and its P&L leverage is mostly absent. Kirk adds that while Costco continues to gain share and should be able to increase membership fees, the stock’s valuation "remains stretched".