Costco stock price target raised to $335 from $300 at Oppenheimer

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Costco shares fall 1.9% as analysts view latest quarter as good but not stellar

Costco Wholesale Corp. shares slid 1.9% Friday, as analysts weighing in on the company’s latest quarterly earnings said they were solid but not stellar. “We would say that COST delivered a strong quarter by most retailers’ measures, but by Costco’s standards was somewhat average,” wrote Instinet analyst Michael Baker, who rates the stock as neutral. “While in no way a negative catalyst with the stock trading at ~34.5x FY20 consensus EPS, we think that the market would want more of a beat to get the stock appreciably higher from here, especially with a tougher profit comparison ahead in 2Q.” JPMorgan said the stock remains a core long-term holding in its view, as it continues to capture market share from peers and other retailers, while its food business in the U.S. and internationally remains robust. “Moreover, we still see the high probability of a special dividend given COST ended 1Q with $9B in cash,” analyst Christopher Horvers wrote in a note. Costco shares have gained 43% in 2019, while the S&P 500 has gained 26%.

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