Shares of the Issaquah, Wash., firm lately traded at $376.40, down 1.9%. However the stock has climbed 28% yr to this point amid sturdy client demand through the coronavirus pandemic.
Deutsche Bank analysts have a maintain score on the stock, with a $328 price goal.
“Costco reported sturdy November gross sales, albeit softer than the prior two months, with core same-store gross sales up 14.6% vs. a Deutsche Bank [expectation] of 15.1% and in comparison with 16.5% in October, … as hardlines decelerated to mid-teens progress,” they wrote in a commentary.
Oppenheimer analysts have an outperform score on Costco, with a $400 price goal.
“The softer growth appears to be driven by the consumer electronics category, which has experienced very robust growth since May,” they wrote in a commentary.
“Consequently, we consider the slowdown might have been impacted by a pull-forward in demand. U.S. visitors remained strong, growing 8.4%. [Given that the shares are] buying and selling primarily in step with all-time highs, we’d count on some weak spot [Thursday]. Costco stays a high choose for us.”
J.P. Morgan analysts have an chubby score on Costco, with a $406 price goal.
“Despite strong stock-up behavior, we believe there was some moderation in the comparison trend late in the month on a softer Black Friday weekend year-on-year, due to social distancing and an October/early November pull-forward in holiday demand starting with Prime Day from November.”
Nonetheless, “we consider Costco continues to be a core holding,” the analysts mentioned.
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