Costco price target raised to $900 from $880 at DA Davidson

DA Davidson raised the firm’s price target on Costco (COST) to $900 from $880 and keeps a Neutral rating on the shares after its Q1 results. The company’s membership fee income was in line with consensus as growth remains solid, while gross margins were better than expected, driving EBIT ahead of estimates, the analyst tells investors in a research note. Core margins drove most the gain in gross margins, helped by sales mix and Costco’s co-branded credit card, the firm adds.