Key control
- Costco reported March sales better than expected on Wednesday, including the growth of comparable sales from USA. UU. Which also exceeded Wall Street estimates.
- The retailer “has succeeded in all the countries where he entered,” JPMorgan analysts said.
- Last week, another analyst suggested that Costco could be relatively well positioned to resist the impact of rates.
Costco (Cost) on Wednesday, March sales that exceeded expectations, and JPMorgan analysts reacted by calling the company a “clear market leader.”
The minorist based on membership reported net sales of $ 25.51 billion in the period of five weeks until April 6, more than 8% year after year. That exceeded the analyst’s consensus of 6.8% of net sales growth, said JPMorgan. The comparable sales of the United States improved more than 7%, which also exceeded estimates, while electronic commerce sales increased by 16%. The analysts pointed out that analysts pointed out that analysts pointed out that analysts said that analysts, pointed with analysts.
The retailer has experienced a “global impulse/scaling in progress,” said JPMorgan, which leads to market share profits in multiple regions. “No other important retailer has succeeded in all the countries where he entered,” the analysts added.
JPMorgan maintains the ‘overweight’ qualification for Costco
JPMorgan maintained a “overweight” rating and an objective price of $ 1,070, which implies an increase of almost 11% of the Costco closure on Wednesday of $ 965.19. On Thursday, the shares changed little as the broader markets fell in the midst of volatility fed by the rate.
Last week, UBS analysts said Costco, along with the rival Walmart (WMT), can be relatively well positioned to resist the impact of tariffs. As retailers respond to import taxes by increasing prices, consumers are less likely to reduce essential elements such as groceries, analysts said. That benefits large retailers as a costco, which have the necessary scale to negotiate with suppliers and offer customers competitive prices, according to the UBS report.
