Costco comps accelerated for second consecutive month, says DA Davidson

DA Davidson keeps a Neutral rating and $478 price target on Costco after its August sales data that showed a second month of acceleration in a row after negative prints in May and June. The firm notes however that the July comps saw a 75 bps benefit in the U.S. from a July 4th shift, and adjusted for that tailwind, August and July were only 60 bps apart. The analyst adds that DA Davidson prefers to look for a better entry point since Costco is trading at a premium 35.2-times earnings multiple versus consensus estimates for the next 12 months.