Costco price target raised to $1,060 from $800 at Citi

Citi raised the firm’s price target on Costco (COST) to $1,060 from $800 and keeps a Neutral rating on the shares following a transfer of coverage. The warehouse club business model is a “defensive yet discretionary retail experience that wins with consumers regardless of the economic backdrop,” the analyst tells investors in a research note. The firm views both BJ’s and and Costco as attractive unit growth concepts among the broader retail peer group based on strong membership offerings, stable same-store-sales growth, steady margins and long-term store growth potential. Citi likes both businesses but believes the stocks’ risk/rewards are balanced at these valuation levels.