Morgan Stanley reported on Tuesday that it has raised its price target on discount retailer, Costco Wholesale Corporation (COST).
The firm’s analyst Mark Miltamuth has maintained a “Overweight” rating on COST, and has increased the company’s price target from $109 to $113. This price target suggests a 10% upside from the stock’s current price of $102.04.
The analyst commented, “we are raising our price target to $113 from $109 as Costco remains our preferred safe haven in staples retailing. In our view, Costco’s ability to deliver consistent mid single digit traffic trends in the face of a variety of economic landscapes highlights the strength of its customer loyalty driven business model. Looking forward, we see Costco’s ramping international expansion as the next growth driver.”
Costco shares were mostly flat during Tuesday morning trading. The stock has increased 13% in the past year.
The Bottom Line
Shares of Costco Wholesale Corporation (COST) have a 1.08% yield, based on Tuesday morning’s price of $102.15.
Costco Wholesale Corporation (COST) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.