Costco price target raised to $700 from $670 at Bernstein

Bernstein analyst Dean Rosenblum raised the firm’s price target on Costco to $700 from $670 and keeps an Outperform rating on the shares. Even at 40-times forward price-to-earnings, Costco is a stock that the firm believes, five years from now, “we will want to have had in our portfolio, and that’s how we believe buyers of the stock actually think about it.” It’s crowded, but with less “priced for perfection” risk because they report sales monthly. And with decades of new-store runway, Bernstein expects them to remain a reliable compounder.