Piper Jaffray Maintains Overweight Rating for Costco

Ahead of Costo Wholesale COST's earnings release, Piper Jaffray maintained its Overweight rating and price target of $67. The analysts estimate that Costco's quarter three EPS will come in at $0.69, against a consensus of $0.65. They stated that "gas and [foreign exchange] continued to be a benefit to COST's comp in [the third quarter]," but added that this could be vastly differently in the fourth quarter given the "retreat in the British Pound and Canadian dollar and a recent decrease in gas prices." Piper is also maintaining its fourth quarter EPS estimates of $0.95, which is in line with the street average. With Costco trading at $55.97 as of 3:44PM, there's still room for a rich return before the stock hits its price target.