Markets

Costco Upgraded to “Buy” at Stifel Nicolaus (COST)

Membership warehouse operator Costco Wholesale Corporation ( COST

) saw its rating boosted on Tuesday by analysts at Stifel Nicolaus.

The firm upgraded COST from "Hold" to "Buy," citing re-accelerating square footage growth for the company. Stifel Nicolaus maintained its $68 price target on the stock, which represents a potential 22% upside to its Monday closing price of $55.71.

Costco shares rose 60 cents, or +1.1%, in premarket trading Tuesday.

The Bottom Line

We had removed shares of COST from our "recommended" list Sept.22, 2008,when the stock traded at $66.09. The company has a dividend yield of 1.47%, based on last night's closing stock price of $55.71. The stock has technical support in the $50-$52 price area. If the shares can firm up, we see overhead resistance around the $58-$60 price levels. We would remain on the sidelines for now.

Costco Wholesale Corporation ( COST ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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