Piper Jaffray Reiterates Overweight on Costco

Piper Jaffray is out with its report today on Costco COST, reiterating Overweight. In a note to clients, Piper Jaffray writes, "We are estimating a June comp of +13% to +14% vs. consensus of ~+13.4%. We are assuming a core merchandising comp of ~+5.7% and combined gas, F/X and cannibalization should provide a tailwind of ~+5.5%. For the month of June, the Fourth of July holiday closure will likely positively benefit June by ~300bps and negatively impact July by ~360bps due to the calendar shift. We reiterate our Overweight rating and price target of $88 based on 23x F12E EPS of $3.81." Shares of COST closed Friday at $81.54, up 0.37% from Thursday's close.