DA Davidson Reiterates Neutral Rating on Costco Wholesale (COST)

DA Davidson analyst Michael Baker reiterated a Neutral rating and $1,000.00 price target on Costco Wholesale (NASDAQ: COST).

The analyst commented, "We were there when the doors opened at Costco’s 900th club in Sharon, MA (my hometown). As is usually the case, there was a long line to get in at the opening - we heard that some were there overnight – and the foot traffic was strong and steady throughout the morning. The town is excited...This is Costco’s first new club opening in Massachusetts in 23 years. There are now 7 locations in the state. The new Sharon club has both gas and alcohol. CEO Ron Vachris noted that the team was out looking at other sites in the area with the potential plans to open up to four more clubs in the area. Could nearby Rhode Island get its first Costco club soon? The closest existing Costco (by drive time) is 20 minutes/14 miles from this new location. The closest BJ’s is a similar distance. There are no Sam’s Clubs in either Massachusetts or Rhode Island, with the closest one being more than an hour away in New Hampshire. This supports our view that the club segment has plenty of white space even with all three players in growth mode. We believe the three combined have just 5% share of U.S. retail, but that is growing as consumers increasingly gravitate to the strong value proposition."

For an analyst ratings summary and ratings history on Costco Wholesale click here. For more ratings news on Costco Wholesale click here.

Shares of Costco Wholesale closed at $927.08 yesterday.

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