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UPDATE: Citi Initiates Coverage On Costco Wholesale Corporation

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Courtesy of Benzinga.

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Analysts at Citi Research initiated coverage on Costco Wholesale Corporation (NASDAQ: COST) with a Buy rating and $150 price target Monday.

Oliver Chen highlighted factors that may yield upside in shares of Costco:

  • Costco provides high-end products for affordable prices. Costco offers a low markup rate of ~11% on high quality products.
  • Unique subscription model drives profitable growth. Analysts expect membership fees to continue providing an “annuity-like” cash flow given a loyal customer base.

Chen also believes Costco has several years of low-risk growth ahead. Chen Stated, “We believe COST is poised to deliver consistent 9-13% earnings growth.” Costco plans to develop 30 or more stores annually.

Shares of Costco traded recently at $125.80, up 0.34 percent

Latest Ratings for COST

Date Firm Action From To
Sep 2014 Citigroup Initiates Coverage on Buy
Sep 2014 Northcoast Research Upgrades Neutral Buy
Jun 2014 Morgan Stanley Initiates Coverage on Overweight

View More Analyst Ratings for COST
View the Latest Analyst Ratings

Posted-In: Citi Investment Research Oliver ChenAnalyst Color Price Target Initiation Analyst Ratings

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