Costco Higher Following China Store Opening

Costco Wholesale Corporation COST shares are trading higher by 4% after the company opened its first store in China.

In a note out Tuesday morning, Morgan Stanley said, "After slowing for the past four years, international growth could accelerate to ~7% by 2024 from ~3% in 2019e, with a small kicker from China."

Morgan Stanley maintained an Equal-Weight rating and $230 price target on Costco's stock.

"It’s very likely that Costco becomes a key retailer in China as the growing middle class — which is triggering investments in larger living spaces and creating more income — drives demand to buy in bulk (which is still a rather unique model in the country)," according to Yahoo Fiance's Brian Sozzi.

Costco shares traded around $289.77 at time of publication. The stock has a 52-week high of $290.65 and a 52-week low of $189.51.

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Photo credit: Tony Webster, via Wikimedia Commons