Membership warehouse operator Costco Wholesale Corporation ( COST
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.
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