Costco price target raised to $502 from $482 at Roth MKM

Roth MKM raised the firm’s price target on Costco to $502 from $482 but keeps a Neutral rating on the shares after its Q4 results. The company continues to be a dominant operator, but while positive the catalysts such as membership fee increase and possible special dividend are exciting, the stock’s valuation of 23-times enterprise value to next-12-months expected EBITDA “seems too rich”, the analyst tells investors in a research note. The firm further cites less inflation benefits and possible deflation, the discretionary spending and big-ticket item risk, as well as competitive promotional activity increases.