Costco June Sales To Face Pressure From Less Spending On Discretionary Categories, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on Costco Wholesale Corporation (NASDAQ:COST) with a price target of $540. He expects Costco's June sales to be negatively impacted by a decrease in gas prices and less spending on discretionary items. Despite this, Feldman believes Costco will remain a share gainer due to its value-focused merchandising and high member loyalty.
June 29, 2023 | 5:37 pm
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Costco's June sales are expected to be negatively impacted by a decrease in gas prices and less spending on discretionary items. However, the company is expected to remain a share gainer.
The analyst's report suggests that while Costco's June sales may be negatively impacted by external factors such as a decrease in gas prices and less spending on discretionary items, the company's strong fundamentals such as its value-focused merchandising and high member loyalty are expected to help it remain a share gainer.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100