Costco's Steady Growth Potential: Analyst Forecasts Modest November Trends With Long-Term Optimism
Portfolio Pulse from Shivani Kumaresan
Oppenheimer analyst Rupesh Parikh maintains an Outperform rating on Costco Wholesale Corporation (NASDAQ:COST) with a price target of $630, citing steady growth potential into 2024. November sales and Q1 earnings dates are announced. A modest November U.S. comp forecast of +3% is expected, with a four-year adjusted trend moderating to +30.9% from October's +36.4%. Potential catalysts include a membership fee increase and a special dividend, though their likelihood by end of 2023 is uncertain. Investors are advised to buy on weakness. COST shares recently traded higher by 1.01% at $590.21.
November 22, 2023 | 7:35 pm
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POSITIVE IMPACT
Oppenheimer analyst maintains Outperform rating on Costco with a $630 price target. November sales and Q1 earnings are upcoming, with a modest comp forecast. Potential catalysts include membership fee increase and special dividend, but with uncertain timing.
The positive outlook from the analyst, along with the Outperform rating and high price target, suggests confidence in Costco's growth potential. The upcoming financial reports could provide additional momentum, although the caution about the timing of potential catalysts like a fee increase or special dividend may temper immediate expectations. The recent uptick in share price reflects market optimism.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100