Costco price target raised to $571 from $525 at JPMorgan

JPMorgan analyst Christopher Horvers raised the firm’s price target on Costco to $571 from $525 and keeps an Overweight rating on the shares following the fiscal Q4 report. Core-on-core gross margin was up 35 basis points, primarily driven by lapping markdowns in non-food categories a year ago, the analyst tells investors in a research note. The firm says now is a good time to own Costco given its defensiveness, higher-income consumer base and ongoing share gains. The stock is very well-positioned in the current market with high gas prices and increasing economic pressures causing consumers to seek out the company’s “best-in-retail prices,” says JPMorgan.