Market may see Costco’s weak March sales as negative, says DA Davidson

DA Davidson analyst Michael Baker keeps a Neutral rating and $478 price target on Costco after its March sales data. The company’s comps continued to slow amid softness in discretionary categories, and its U.S. March comps were up just 0.9% excluding gas and FX – a significant decline from +3.4% in February, the analyst tells investors in a research note. The market could see Costco’s weak March sales as a negative and thus the stock should pull back a little, the firm added.