Costco price target raised to $570 from $478 at DA Davidson

DA Davidson raised the firm’s price target on Costco to $570 from $478 but keeps a Neutral rating on the shares. The company put up another solid quarter with the key positive being better than expected gross margins, though the stock is off a bit in the pre-market as some were expecting a few increases in member fees as it has been more than 6 years since the last one and with EBIT results below estimates due to higher than expected costs, the analyst tells investors in a research note. These issues should not be too concerning, though it would not be too surprising to see a bit of a pullback due to the stock’s premium valuation, the firm added.