Costco price target raised to $494 from $484 at Roth MKM

Roth MKM raised the firm’s price target on Costco to $494 from $484 but keeps a Neutral rating on the shares. The company is facing headwinds with slowing comp sales growth due to inflation and potential competitive pressures weighing on its gross margins, the analyst tells investors in a research note. While Costco continues to gain share and should be able to increase membership fees, the stock’s valuation remains "stretched" in the face of a FY23 that will have limited earnings upside, the firm added.