Guggenheim Reiterates Neutral Rating on Costco Wholesale (COST)

Guggenheim analyst John Heinbockel reiterated a Neutral rating and {REMOVEPT} price target on Costco Wholesale (NASDAQ: COST).

The analyst commented: "A flat-to-down trendline during the past year suggests valuation finally reaching a level that must be digested before outperformance can resume. As shown in Exhibit 1, a visual EBITDA PEG depiction across large-cap retail, the current 2x is the sector’s highest with a meaningful spread versus the next closest peers. The business possesses an industry-leading 10-12% growth algo powered by both a structurally superior value proposition and a model proven to travel globally. With 134 locations outside of North America, the growth runway may surpass a decade in duration, though unit expansion has been sub-par during the past two years. As a result, we stay NEUTRAL-rated and are still in search of an attractive entry point, which may likely be accelerated Asian expansion."

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 $922.77 yesterday.

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