Costco price target lowered to $450 from $490 at Wells Fargo

Wells Fargo analyst Edward Kelly lowered the firm’s price target on Costco to $450 from $490 and keeps an Equal Weight rating on the shares. Costco’s Q1 update was generally as expected and generally in line with recent trends, and Kelly says flow through issues remain when stripping out what looks to be unsustainable gains in fuel margins, the analyst tells investors in a research note. The analyst has been growing incrementally concerned about the outlook for Costco’s earnings and stock, and is not a buyer of the recent pullback given the risks ahead.