Gordon Haskett lowers Costco core comp forecast to 1.5%

Gordon Haskett made no change to the firm’s Buy rating and $600 price target on Costco. The firm believes the sequential moderation as seen in February continued in March, and lowered its core comp forecast to 1.5% from 6%, adding that its analysis of traffic in the California region indicates that footfall levels have been running below the company average, which is likely pressuring sales, the analyst tells investors in a research note. March was likely soft across most pockets of retail and the "choppy" five-week period is unlikely to be Costco-specific, the firm notes.