Costco defensive growth profile worth its valuation, says Baird

Baird keeps an Outperform rating and $600 price target on Costco. The firm is noting that the company’s September core comps growth of 3.7% slowed from August’s 4.1%, but remained “solid in the face of disinflation”. Costco’s food businesses were stable and its strong traffic underscores continued market share gains, the firm adds, stating that Costco’s defensive growth profile is “worth” its 35-times next-12-month’s expected earnings multiple.