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Costco’s premium valuation already captures premium offering, says DA Davidson

DA Davidson keeps a Neutral rating and $1,000 price target on Costco (COST) after its Q4 results. The company reported another very strong quarter, including 5.7% total comps and 6.4% comps ex. gas price changes and FX, but to the extent that sales were already known due to their monthly reporting, the incremental numbers from the print and call were “mixed” – membership fee income topped estimates but EBIT dollars were “slightly below consensus” and growth “slowed”, the analyst tells investors in a research note. The stock’s “premium valuation” already captures its premium offering, the firm added.

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