June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

JPMorgan likes Costco's risk/reward into the print

Published 06/12/2023, 04:16 am
© Reuters.
COST
-

JPMorgan analysts raised its price target for Costco (NASDAQ:COST) to $652 from $605 per share in a note Tuesday, maintaining an Overweight rating on the stock.

The firm said that for Costco, which reports earnings on Thursday, December 7, the release, alongside how CFO Richard Galanti speaks to potential future price investment, are usually catalysts for the stock.

"We expect the obligatory questions on when a special dividend comes (we remain hopeful that one comes prior to the end of the calendar year) and when it will raise the membership fee (which we think is off the table for a while given the macro backdrop)," said analysts.

"On earnings, despite the last two months sales coming in lighter than expected, we are ahead of the Street and like the risk-reward into the print on gross margin upside from lower than expected gas margin headwinds YOY (as experienced by both BJ and Sam's) and perhaps some LIFO tailwinds," they added.

The investment bank's updated EPS estimate is $3.64 vs. $3.41 per Consensus Metrix, while its FY24 EPS forecast is $15.31 vs. the Street's $15.68.

Costco shares are trading over 1% higher at the time of writing on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.