Costco price target raised to $1,177 from $1,167 at Bernstein

Bernstein analyst Zhihan Ma raised the firm’s price target on Costco (COST) to $1,177 from $1,167 and keeps an Outperform rating on the shares. The firm notes Costco reported Q2 results and managed to beat consensus expectations on the top line even with its well telegraphed monthly sales results. However, it missed on margins slightly and membership fee income. Bernstein continues to believe that Costco is the highest quality company in its coverage, with multiple decades of global warehouse expansion opportunities ahead. Should there be any pullback in the stock price, this could provide a better entry point for investors to own such a high quality compounder, the firm argues.