Jefferies Maintains Buy on Costco (COST)

Jefferies is out with its report today on Costco COST, maintaining Buy.

In a note to clients, Jefferies writes, "COST shares have pulled back since its earnings report earlier this month reflecting concerns around inflation and the impact on gross margin, potential delays in a membership fee increase relative to prior investor expectations and the pace of share buybacks. We are less concerned on all three fronts and recommend buying shares."

Jefferies has an $85 PT on COST.

Shares of COST closed Wednesday at $69.76, down 2.52% from Tuesday's close.