Costco Rated ‘Overweight’ By J.P. Morgan (COST)

Costco Wholesale Corporation COST is likely to grow due to its high traffic. The company’s May traffic was up 5.5%. It also has experienced good traffic growth over last five months. The company has also said that its major segment in dollars has been soft due to a combination of weak demand and less MVM couponing year over year. However, this setback has been partially offset by strong demand in sporting goods, HBA and lawn & garden. The company has been given an ‘Overweight’ rating by J.P. Morgan, with a price target of $64.00, which is based on a 50/50 weighted, blended P/E and EV/EBITDA multiple build.